To Buy Or Not To Buy The Bitcoin Dip?

The on-chain analytics platform Santiment has provided useful insights for investors considering buying the Bitcoin dip.

Bitcoin has seen a dramatic sell-off over the past few days, dropping below the crucial support at $60,000. The sell-off began after Bitcoin failed to hold above the key resistance at $62,000, triggering a wave of panic among traders who had been expecting a continued rally to new highs.

As Bitcoin continued to slide lower, reaching levels not seen since early June, traders who had been waiting for a dip to buy were faced with a difficult decision. While the lower prices were tempting, the on-chain analytics platform Santiment provided some useful insights that could help investors decide whether or not to buy the Bitcoin dip.

According to Santiment, those considering buying the dip should be aware that the worst might not be over yet, as Bitcoin could still experience further dips from its current price range. The platform’s analysis showed that FUD (Fear, Uncertainty, and Doubt) tends to be present during such dramatic dips.

This suggests that those looking to buy the Bitcoin dip may have to be careful, as Bitcoin could dip further due to those waiting to offload their holdings out of panic once the flagship cryptocurrency recovers. There have also been calls that Bitcoin could still drop to the $40,000 range, which could prove bearish for Bitcoin’s price, causing it to further decline.

On the other hand, Santiment also noted that Bitcoin usually recovers from such dramatic dips after the average trader has given up hope on crypto. This could be a sign that the bottom is near and that those looking to buy the dip may soon have their chance.

Crypto analyst CrediBULL Crypto also had some words for those looking to buy the dip at Bitcoin’s current price range. He mentioned that anyone looking to buy at these current price levels must be okay with being “underwater” for a while.

He added that anyone uncomfortable with being underwater for a while should wait until some positive price action develops. He noted that this positive price action could ideally come in the “form of a major liquidation flush (open interest reset) or some LTF impulsive price action.”

The crypto analyst also addressed spot Bitcoin buyers, assuring them that they need not worry about this current price range, claiming that Bitcoin could drop lower on the higher time frame (HTF) without invalidating the HTF bullish structure. Based on Bitcoin’s bullish structure, he mentioned that the price correction following this downtrend will send the flagship crypto to $100,000.

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.

These Spot Bitcoin ETFs also recorded net inflows of $143 million on July 5, which marked a turnaround considering that they had experienced two consecutive days of outflows before then. These inflows into Bitcoin have contributed to the recent price rebound that the flagship cryptocurrency has witnessed.

At the time of writing, Bitcoin is trading at around $57,100, up over 2% in the last 24 hours, according to data from CoinMarketCap.

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