Should You Buy Bitcoin on a Dip? Spot ETFs See Big Flows

Bitcoin fell to around $53,600 on July 4, marking its first drop below $54,000 since February 25. The largest cryptocurrency by market cap has since recovered slightly, trading at approximately $56,750However, it remains 23% below its all-time high of over $73,000 reached in March.

This recent drop in Bitcoin price coincides with an increase in flows into Spot Bitcoin ETFs on July 6.

Capital flows into ETFs increase due to Bitcoin decline

Interestingly, the recent drop in Bitcoin’s price coincided with a significant increase in inflows into Spot Bitcoin ETFs on July 6. The first of these ETFs 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.

Hunter Horsley, CEO of Bitwise Asset Management, noted that his team managed to acquire bitcoins at exceptionally low costs, which 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.

Additionally, Horsley highlighted the current market drop as a significant buying opportunity for new and existing investors, highlighting the positive outlook for Bitcoin’s future. presents a favorable chance of entering the market for those looking to capitalize on the decline.

While the Grayscale Bitcoin ETF (GBTC) saw $28 million in outflows, other ETFs saw strong inflows, signaling continued investor interest in capitalizing on Bitcoin’s declining price.

Market Trends and Key Support Levels

Market watchers are keeping a close eye on key support levels as Bitcoin’s trendlines break down. Recently, Bitcoin faces resistance Bitcoin price has dropped 6.72% over the past week to $57,000. If Bitcoin price closes below its recent low of $54,502, it could drop another 7.3% and reach its next support level at $52,000.

This bearish outlook is also supported by technical indicators. The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart are both below their neutral thresholds of 50 and zero, respectively, suggesting that the bearish momentum could persist and push Bitcoin price 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 in bullish sentiment. This scenario could potentially push Bitcoin price up to the next resistance level at $59,000.

Feeling optimistic or pessimistic about Bitcoin? Share your intuition!

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