Last weekend, Bitcoin (BTC) took a dip under $18,000 putting the entire market in the mode of absolute panic. Interestingly, the “Bitcoin Dead” searches on Google also touched an all-time high over the last weekend.
Popular market analyst Alex Kruger also found that the “crypto is dead” searches also reached their all-time high.
Google searches for "bitcoin dead" hit all time highs over the weekend. pic.twitter.com/oDXNqGEeIL
— Alex Krüger (@krugermacro) June 20, 2022
Binance CEO Changpeng Zhao also said that “Historically speaking, if you bought Bitcoin every time there is a “bitcoin is dead” headlines, you would have done well. Logic: when they lose hope, that’s when the bottom is in”. On-chain data provider Santiment explains:
“Bitcoin’s plummet to $17.7k this weekend brought out the most discussion related to the #1 market cap asset in 2022. We often see major price reversals correlate precisely with high social volume rates, and $BTC has jumped +15.8% since”.
Bitcoin Bottom or No Bottom – Why One Should Start Buying?
Very few people have ever managed to predict the bottoms of the bear market cycle. After last weekend’s drop to under $18,000, the BTC price has recovered and is currently staying above $20,000.
Popular market analyst Rek Capital explains that this could be the best time for Dollar Cost Averaging (DCA) instead of waiting for the next Bitcoin bottom. He wrote:
“Many BTC indicators are suggesting that we are close to an absolute bottom in this macro bottoming period But the more confluence we get, the more there is an emotional urge to focus on the one or two metrics that suggest that $BTC could go lower Dollar-Cost Averaging helps”.
He further notes that it would be better to average down Bitcoin from the current levels and hold the amount until the next bull cycle i.e. at least for 4-5 years from now. The analyst further writes: “Bitcoin data science shows that anything below $35,000 is an area that has historically yielded outsized ROI for long-term Bitcoin investors Which is why anything below $20,000 is a gift”.
Bitcoin can certainly head lower concerning the global macro scenario. The Fed is likely to announce more interest rate hikes and there’s every chance of the U.S. slipping into recession. However, it would make sense for investors to start capital of their bags and maintain the investment discipline.