Is This Bitcoin Buy The Dip Opportunity or Should Investors Wait?
Highlights
- Despite the dip, the crypto community sees this as a buying opportunity, though Santiment advises waiting for market enthusiasm to settle.
- Spot Bitcoin ETFs showed net outflows of $20.5 million on July 3.
- A major Bitcoin whale deposited an additional 1,800 BTC ($106 million) to Binance in the last hour.
It seems that there’s no stop to Bitcoin’s downward slide as the BTC price has tanked by 5% in the last 24 hours slipping under $$59,000. As BTC loses its crucial support of $60,000, the next support is at $57,000. The bigger question to Bitcoin investors is whether or not they should buy the dip or wait for further downside.
Bitcoin Buy The Dip Opportunity?
On-chain data provider Santiment reported that Bitcoin and altcoins are seeing heavy sell-offs hitting nearly two-month low levels. Along with BTC, the Ethereum price also tanked all the way under $3,200 despite the scheduled arrival of spot Ethereum ETFs by July 15.
However, Santiment reported that the crypto community is currently viewing this as a potential buy-the-dip opportunity. However, the firm suggests that investors should wait for the initial wave of enthusiasm to settle before making any fresh purchases.
As per Santiment, the ideal time to purchase would be when traders become skeptical and impatient. The recent BTC price drop has led to aggressive liquidations as many traders had bought the dip when BTC was trading around $60,000. This trend is further evident in altcoins like Ethereum and Solana, which have registered greater falls.
On the other hand, the spot Bitcoin ETFs continue to show weakness. On Wednesday, July 3, the spot Bitcoin ETFs showed daily net outflows of stood at $20.5 million. The Grayscale GBTC registered $27 million of outflows while Fidelity’s FBTC was the only ETF to see inflows at $6.5 million. Rest all other ETFs had zero inflows yesterday.
Also Read: Besides ETF Outflow Woes, These Factors Could Shove BTC To $55,000
Bitcoin Whale Loses $20 Million in 15 Days
Following this volatility, the Bitcoin whale activity has surged significantly in the market. Ten minutes ago, a major Bitcoin whale or institution deposited an additional 1,800 BTC ($106 million) to Binance. Over the past week, this whale has transferred a total of 5,281 BTC ($323 million) to Binance at an average price of $61,196. The entity now holds 6,068 BTC ($358 million). The whale has reportedly registered a loss of $20 million in the recent trade.
The whale deposited 1,800 $BTC($106M) to #Binance at a loss again 40 minutes ago.
He has deposited 5,281 $BTC($323.2M) to #Binance since June 27, with a loss of ~$20M!https://t.co/VWgcfiOpxU pic.twitter.com/WESV8GkfHV
— Lookonchain (@lookonchain) July 4, 2024
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