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Should You Buy Bitcoin’s Dip? Spot ETFs See Big Inflows
Bitcoin fell to around $53,600 on July 4, marking its first drop below $54,000 since February 25. The largest cryptocurrency by market value has since recovered slightly, trading at approximately $56,750However, it remains 23% below its all-time high of more than $73,000 in March.
This recent drop in the price of Bitcoin coincides with a surge in inflows into Spot Bitcoin ETFs on July 6.
ETF Inflows Surge Amid Bitcoin Decline
Interestingly, the recent drop in Bitcoin’s price coincided with a significant surge in inflows for Spot Bitcoin ETFs on July 6. Leading the charge was the Fidelity ETF (FBTC), which saw an impressive $117 million in new investments. Not far behind was the Bitwise Bitcoin ETF (BITB), which attracted $30 million.
Bitwise Asset Management CEO Hunter Horsley noted that his team has managed to acquire Bitcoin at exceptionally low costs, which has boosted investor confidence. In the first week of July alone, BITB attracted over $66 million in inflows, increasing its Bitcoin holdings to over 38,000.
Horsley also highlighted the current market decline as a significant buying opportunity for both 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 dip.
While the Grayscale Bitcoin ETF (GBTC) saw $28 million in outflows, other ETFs saw strong inflows, demonstrating continued investor interest in capitalizing on the decline in Bitcoin’s price.
Market Trends and Key Support Levels
Market watchers are closely watching key support levels as Bitcoin trend lines break down. Recently, Bitcoin met resistance at $57,000, down 6.72% over the past week. Meanwhile, if Bitcoin 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 the Awesome Oscillator (AO) on the daily chart are below their neutral levels of 50 and zero, respectively, suggesting that the bearish momentum could persist and push the price of Bitcoin lower.
Potential Bullish Signals
On the other hand, if Bitcoin manages to break above the $57,670 resistance level and forms a higher high on the daily chart, it could signal a shift towards bullish sentiment. This scenario could potentially push Bitcoin price to the next resistance level at $59,000.
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