The on-chain analytics platform Santiment has provided useful insights for investors considering buying the Bitcoin dip. The platform suggested that the worst may not be over because the flagship crypto could still experience further dips from its current price range.
To Buy Or Not To Buy The Bitcoin Dip?
In an X (formerly Twitter) post, Santiment mentioned to those considering buying the dip that market participants also anticipate a rebound. They added that these dramatic dips, just like the one Bitcoin recently experienced, are frequently met with FUD (Fear, Uncertainty, and Doubt).
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Source: Santiment
This means that those seeking to buy the Bitcoin dip could have to watch out as Bitcoin could dip further resulting from those waiting to dump their holdings out of panic once the flagship crypto recovers. Regarding FUD, there have also been calls that Bitcoin could still drop to the $40,000 range. As such, such statements could prove bearish for Bitcoin’s price, causing it to further decline.
Meanwhile, Santiment noted that Bitcoin normally recovers from such dramatic dips after the common trader has given up hope on crypto. Crypto analyst CrediBULL Crypto also had some words for those seeking to buy the dip at Bitcoin’s current price range. He mentioned in an X post that anyone seeking to buy at these current price levels should be okay with being “underwater” for some time.
He added that anyone uncomfortable with being underwater for some time should wait until some positive price motion develops. He noted that this positive price motion could ideally are available in the “type of a significant liquidation flush (open interest reset) or some LTF impulsive price motion.”
The crypto analyst also addressed spot Bitcoin buyers. He assured them that they needn’t worry about this current price range, claiming that Bitcoin could drop lower on the upper timeframe (HTF) without invalidating the HTF bullish structure. Based on Bitcoin’s bullish structure, he mentioned that the value correction following this downtrend will send the flagship crypto to $100,000.
Institutional Investors Are Buying The Dip
Recent data from Farside investors shows that institutional investors are buying the Bitcoin dip. On July 8, the Spot Bitcoin ETFs recorded total net inflows of $294.8 million. BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC all recorded impressive net inflows of $187.2 million, $61.5 million, and $25.1 million, respectively.
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These Spot Bitcoin ETFs also recorded net inflows of $143 million on July 5, which marked a turnaround considering that they’d experienced two consecutive days of outflows before then. These inflows into Bitcoin have contributed to the recent price rebound that the flagship crypto has witnessed.
On the time of writing, Bitcoin is trading at around $57,100, up over 2% within the last 24 hours, based on data from CoinMarketCap.
BTC price drops toward $57,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com