The on-chain analytics platform Santiment has provided useful insights for investors considering the Bitcoin dip. The platform suggested that the worst may not be over yet as the flagship crypto could still experience further declines from its current price range.
To buy or not to buy the Bitcoin Dip?
In an X (formerly Twitter) after, Santiment told those considering buying the dip that market participants also expect a recovery. They added that these dramatic dips, like the ones Bitcoin has recently experienced, happen most of the time FUD (fear, uncertainty and doubt).
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This suggests that those looking to buy the Bitcoin dip may need to be cautious, as Bitcoin could fall further due to those panicking to get rid of their holdings once the flagship crypto recovers. As for FUD, there have also been calls that Bitcoin could still exist drop to the $40,000 range. As such, such statements could prove bearish for Bitcoin’s price, causing it to fall further.
Meanwhile, Santiment noted that Bitcoin typically recovers from such dramatic dips after the average trader gives up hope on crypto. Crypto analyst CrediBULL Crypto also had some words for those looking to buy the dip at Bitcoin’s current price range. He mentioned in one X message that anyone looking to buy at these current price levels should have no problem being ‘underwater’ for a while.
He added that anyone who doesn’t feel comfortable being underwater for a while should wait until positive price action develops. He noted that this positive price action could ideally come in the “form of a major liquidation wave (open interest reset) or an LTF impulsive price action.”
The crypto analyst also addressed spot Bitcoin buyers. He assured them not to worry about this current price range, claiming that Bitcoin could fall lower on the higher timeframe (HTF) without negating the bullish structure of the HTF. Based on Bitcoin’s bullish structure, he said the price correction that follows this downtrend will be the flagship crypto to $100,000.
Institutional investors are buying the dip
Recent data from Farside investors shows that institutional investors buy the Bitcoin dip. On July 8, the Spot Bitcoin ETFs recorded total net inflows of $294.8 million. IBIT from BlackRock, Fidelity’s FBTCAnd GBTC in grayscale all recorded impressive net inflows of $187.2 million, $61.5 million and $25.1 million respectively.
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This Discover Bitcoin ETFs also recorded net inflows of $143 million on July 5, which marked a turnaround considering they had previously experienced two consecutive days of outflows. These inflows into Bitcoin have contributed to the recent price rally witnessed by the flagship crypto.
At the time of writing, Bitcoin is trading around $57,100, up more than 2% in the past 24 hours. facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com