BTC: Want to time the bottom? These ‘bull traps,’ ‘fake pumps’ might help

ambcrypto.com:

Bitcoiners have been active in recent days following the latest crypto crash. The 3AC and Celsius liquidations have been attributed to the major price drops. In fact, the on-chain metrics of Bitcoin have been showing some interesting developments of late.

Phrases like “buy or bye” and “buy the dip” become a whole theme around crypto crashes. But the ‘dips’ are becoming rangy in recent months with the Russian invasion and China’s lockdowns. Thus, creating a weak global economy. At the start of the year, Bitcoin was trading around $48k, while currently struggling to hold the $21,500 mark.

Nonetheless, traders have been active even in recent market conditions but there’s a catch here. The latest fall in prices has created a polarizing situation among investors who hit a new record this week.

As per Santiment, Bitcoin’s daily token circulation hit a 4.5-year high on 13 June. 497,680 unique tokens were moved to start the week. It, thus, indicated the divisive nature of trading that is currently in focus.

Source: Santiment

Now, there are two schools of thought here with one group advocating to ‘buy the dip’ considering the low prices. The other is calling for a sell-off to cut down on their losses.

Fair to say, traders’ pain has been very high recently. In fact, this past week has seen the most realized losses since 2009 when this data became available. The Santiment’s tweet also quoted that “High capitulation spikes can & will foreshadow bottoms.”

Source: Santiment

Adding to the woes, Bitcoin’s NVT signal just reached a 4-year low of 209.845. This comes as another bit of pain for the so-called ‘maxis’ and ‘moonboys’. All this hints at the fact that true HODLers need to have patience.

Source: Glassnode

The Federal Reserve approved its