Bitcoin
Should You Buy the Bitcoin Dip? Spot ETFs See Huge Inflows
Bitcoin fell to around $53,600 on July 4, marking its first dip below $54,000 since Feb. 25. The largest cryptocurrency by market cap then recovered slightly, trading at approximately $56,750. However, it remains 23% below its all-time high of over $73,000 in March.
This recent decline in Bitcoin price coincides with a surge in spot Bitcoin ETF inflows on July 6.
ETF Inflows Surge Amid Bitcoin Decline
Interestingly, Bitcoin’s recent price drop coincided with a significant surge in spot Bitcoin ETF inflows on July 6. Leading the charge was the Fidelity ETF (FBTC), which saw an impressive $117 million in new investment. Not far behind was the Bitwise Bitcoin ETF (BITB), attracting $30 million.
Bitwise Asset Management CEO Hunter Horsley noted that his team was able to acquire Bitcoin at exceptionally low costs, which bolstered investor confidence. In the first week of July alone, BITB attracted over $66 million in inflows, increasing its Bitcoin holdings to over 38,000.
Furthermore, Horsley highlighted the current market dip as a significant buying opportunity for new and existing investors, highlighting a positive outlook for Bitcoin’s future. This week presents a favorable opportunity to enter the market for those looking to capitalize on the decline.
While the Grayscale Bitcoin ETF (GBTC) saw outflows of $28 million, other ETFs demonstrated strong inflows, signaling continued investor interest in capitalizing on the Bitcoin price drop.
Market Trends and Key Support Levels
Market watchers are closely watching key support levels as Bitcoin’s trend lines break. Recently, Bitcoin faced resistance at $57,000, resulting in a 6.72% decline over the past week. Meanwhile, if Bitcoin’s price closes below its recent low of $54,502, it could drop another 7.3%, reaching its next support level at $52,000.
This bearish outlook is further supported by technical indicators. Both the Relative Strength Index (RSI) and Awesome Oscillator (AO) on the daily chart are below their neutral thresholds of 50 and zero, respectively, suggesting that the bearish momentum could persist and drive Bitcoin’s price lower.
Possible signs of high
On the other hand, if Bitcoin manages to overcome the resistance level at $57,670 and form a higher high on the daily chart, it could signal a shift towards bullish sentiment. This scenario could potentially take the price of Bitcoin all the way to the next resistance level at $59,000.
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