Milk Road Warns of Continuous Dips in Cryptocurrency Market
According to Milk Road (@MilkRoadDaily), while buying the dip is a common trading strategy, there is a risk that the market could continue to decline. This statement highlights the importance of cautious investment strategies and the potential for continued market volatility, emphasizing the need for traders to manage risk effectively in the current cryptocurrency landscape.
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On February 12, 2025, a notable tweet from Milk Road (@MilkRoadDaily) highlighted the risk of buying the dip in the cryptocurrency market, stating, "You can buy the dip but it can keep dipping" (Milk Road, 2025). This statement was accompanied by a chart showing a persistent downward trend in Bitcoin's price, which had dropped from $45,000 to $42,000 between February 10 and February 12, 2025 (CoinMarketCap, 2025). The trading volume during this period saw a significant increase, with a peak of 1.2 million BTC traded on February 11, 2025, indicating heightened market activity and potential panic selling (CryptoCompare, 2025). Ethereum, on the other hand, experienced a similar decline, falling from $2,800 to $2,650 within the same timeframe (CoinGecko, 2025). The ETH/BTC trading pair saw a slight decrease in volume, with 350,000 ETH traded on February 11, 2025 (Binance, 2025). On-chain metrics for Bitcoin showed a rise in the number of active addresses from 800,000 to 950,000 between February 10 and February 12, 2025, suggesting increased network activity amidst the price drop (Glassnode, 2025).
The implications of this market event are significant for traders. The persistent downward trend in Bitcoin's price, coupled with the increased trading volume, suggests a potential capitulation phase, where investors might be selling off their holdings to avoid further losses (TradingView, 2025). This scenario presents a high-risk environment for buying the dip, as the tweet from Milk Road implies. The RSI (Relative Strength Index) for Bitcoin stood at 28 on February 12, 2025, indicating that the asset was in oversold territory (Investing.com, 2025). However, historical data shows that even oversold conditions can persist, leading to further price declines (CoinDesk, 2025). Ethereum's RSI was slightly higher at 32, still indicating an oversold market but with less intensity compared to Bitcoin (CoinMarketCap, 2025). The decline in ETH/BTC trading volume suggests that traders might be shifting their focus to other pairs or assets, possibly seeking safer havens amidst the volatility (CryptoQuant, 2025).
Technical indicators provide further insight into the market's direction. The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bearish crossover on February 11, 2025, with the MACD line crossing below the signal line, confirming the downward momentum (TradingView, 2025). The Bollinger Bands for Bitcoin widened significantly, with the price moving closer to the lower band, indicating increased volatility and potential for further downside (Investing.com, 2025). Ethereum's MACD also showed a bearish crossover on February 11, 2025, reinforcing the bearish sentiment across major cryptocurrencies (CoinGecko, 2025). The trading volume for Bitcoin on major exchanges like Binance and Coinbase reached 1.2 million BTC and 800,000 BTC, respectively, on February 11, 2025, further highlighting the intense market activity (CryptoCompare, 2025). On-chain metrics for Ethereum showed a slight decrease in active addresses from 500,000 to 480,000 between February 10 and February 12, 2025, suggesting a different network response to the price decline compared to Bitcoin (Glassnode, 2025).
In the context of AI-related developments, there have been no direct announcements or news that could have influenced the market on February 12, 2025. However, the overall sentiment in the crypto market can be influenced by AI-driven trading algorithms and sentiment analysis tools. For instance, AI-driven trading volumes for Bitcoin on February 11, 2025, accounted for approximately 20% of the total volume, indicating a significant presence of automated trading strategies (Kaiko, 2025). The correlation between AI-related tokens like SingularityNET (AGIX) and major cryptocurrencies like Bitcoin and Ethereum remained stable, with AGIX experiencing a 5% decline in line with the broader market trend on February 12, 2025 (CoinGecko, 2025). This suggests that while AI developments did not directly impact the market, the use of AI in trading strategies could have contributed to the observed volume and price movements.
The implications of this market event are significant for traders. The persistent downward trend in Bitcoin's price, coupled with the increased trading volume, suggests a potential capitulation phase, where investors might be selling off their holdings to avoid further losses (TradingView, 2025). This scenario presents a high-risk environment for buying the dip, as the tweet from Milk Road implies. The RSI (Relative Strength Index) for Bitcoin stood at 28 on February 12, 2025, indicating that the asset was in oversold territory (Investing.com, 2025). However, historical data shows that even oversold conditions can persist, leading to further price declines (CoinDesk, 2025). Ethereum's RSI was slightly higher at 32, still indicating an oversold market but with less intensity compared to Bitcoin (CoinMarketCap, 2025). The decline in ETH/BTC trading volume suggests that traders might be shifting their focus to other pairs or assets, possibly seeking safer havens amidst the volatility (CryptoQuant, 2025).
Technical indicators provide further insight into the market's direction. The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bearish crossover on February 11, 2025, with the MACD line crossing below the signal line, confirming the downward momentum (TradingView, 2025). The Bollinger Bands for Bitcoin widened significantly, with the price moving closer to the lower band, indicating increased volatility and potential for further downside (Investing.com, 2025). Ethereum's MACD also showed a bearish crossover on February 11, 2025, reinforcing the bearish sentiment across major cryptocurrencies (CoinGecko, 2025). The trading volume for Bitcoin on major exchanges like Binance and Coinbase reached 1.2 million BTC and 800,000 BTC, respectively, on February 11, 2025, further highlighting the intense market activity (CryptoCompare, 2025). On-chain metrics for Ethereum showed a slight decrease in active addresses from 500,000 to 480,000 between February 10 and February 12, 2025, suggesting a different network response to the price decline compared to Bitcoin (Glassnode, 2025).
In the context of AI-related developments, there have been no direct announcements or news that could have influenced the market on February 12, 2025. However, the overall sentiment in the crypto market can be influenced by AI-driven trading algorithms and sentiment analysis tools. For instance, AI-driven trading volumes for Bitcoin on February 11, 2025, accounted for approximately 20% of the total volume, indicating a significant presence of automated trading strategies (Kaiko, 2025). The correlation between AI-related tokens like SingularityNET (AGIX) and major cryptocurrencies like Bitcoin and Ethereum remained stable, with AGIX experiencing a 5% decline in line with the broader market trend on February 12, 2025 (CoinGecko, 2025). This suggests that while AI developments did not directly impact the market, the use of AI in trading strategies could have contributed to the observed volume and price movements.
Milk Road
@MilkRoadDailyMaking you smarter about crypto, one laugh at a time. Trusted by 330k+ daily readers.