This Santiment’s Chain Analytics Platform provided useful information for investors considering buying Bitcoin DropThe platform suggested that the worst may not be over yet as the flagship cryptocurrency could continue to experience further declines from its current price range.
To buy or not to buy bitcoin on a dip?
WX (formerly Twitter) fastingSantiment mentioned to those considering buying into the dip that market participants are also expecting a rebound. They added that these dramatic declines, such as the one Bitcoin recently experienced, are usually met with FUD (fear, uncertainty and doubt).
This suggests that those looking to buy Bitcoin after the drop may need to exercise caution, as Bitcoin could fall even further as those waiting to panic-dive into their holdings once the flagship crypto recovers. As for FUD, there have also been some claims that Bitcoin could continue to fall into the $40,000 rangeTherefore, such statements may turn out to be bearish for the price of Bitcoin, causing it to decline further.
Meanwhile, Santiment noted that Bitcoin usually bounces back from such drastic drops when the average trader is already losing hope in cryptocurrencies. Cryptocurrency Analyst CrediBULL Crypto he also had a few words for those looking to buy the low in Bitcoin’s current price range. He mentioned in Posts X that anyone who intends to buy at current prices must accept that they will be “underwater” for some time.
He added that anyone uncomfortable with being underwater for a while should wait for some positive price action to develop. He noted that this positive price action could ideally take the form of a “earnest liquidation runoff (open interest “reset) or some impulsive LTF price action”.
The crypto analyst also addressed the spot Bitcoin buyers. He assured them that they do not need to worry about the current price range, claiming that Bitcoin can fall lower on higher time frames (HTF) without invalidating the bullish HTF structure. Based on Bitcoin’s bullish structure, he mentioned that a price correction after this downtrend will cause flagship crypto to $100,000.
Institutional investors buy at the bottom
The latest data from Farside investors shows that institutional investors buy Bitcoin at the bottom. On July 8, Spot Bitcoin ETFs saw total net inflows of $294.8 million. BlackRock IBIT, FBTC by FidelityAND GBTC by Grayscale all recorded impressive net inflows of $187.2 million, $61.5 million and $25.1 million, respectively.
These Spot Bitcoin ETF also saw a net inflow of $143 million on July 5, which marked a change given that they had previously seen two consecutive days of outflows. These inflows into Bitcoin have contributed to the recent price recovery experienced by the flagship cryptocurrency.
At the time of writing, Bitcoin is trading at around $57,100, up more than 2% in the past 24 hours, according to data data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
