The post Bitcoin Crashes Below $54K Amid Spot Bitcoin ETF Surge, Time to Buy? appeared first on Coinpedia Fintech News
Bitcoin dropped to around $53,600 on July 4, marking its first dip below $54,000 since February 25. The largest cryptocurrency by market value 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’s price coincides with a surge in inflows for Spot Bitcoin ETFs on July 6.
Buying Opportunity Emerges As BTC Dip
Leading the charge was the Fidelity ETF (FBTC), which recorded $117 million in investments. Following closely was the Bitwise Bitcoin ETF (BITB), with $30 million in inflows.
According to Bitwise Asset Management CEO Hunter Horsley, his team efficiently acquired Bitcoins at very low costs, reinforcing investor confidence. In the first week of July alone, BITB attracted over $66 million in inflows, boosting its total Bitcoin holdings to more than 38,000.
~$30,000,000 inflows into $BITB today. Bitwise PM team efficiently purchased Bitcoin at less than half of 1 basis point of cost.Cumulatively this week $BITB had >$66,000,000 of inflows, and now holds over 38,000 Bitcoin for investors.The outlook for Bitcoin has never been…
— Hunter Horsley (@HHorsley) July 5, 2024
Furthermore, Horsley highlighted the current market fall as a significant buying opportunity for both new and existing investors, highlighting a positive outlook for Bitcoin’s future. This week presents a favorable chance to enter the market for those looking to capitalize on the dip.
Despite the Grayscale Bitcoin ETF GBTC seeing $28 million in outflows, other ETFs showed robust inflows, indicating strong investor interest in buying the dips.
Is the BTC Price Waiting To Fall?
Market observers are closely watching key support levels as Bitcoin’s trendlines break down. 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 supported by indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart, both of which are below their neutral levels of 50 and zero. This suggests that bearish momentum may continue, potentially leading to further declines in Bitcoin’s price.
On the flip side, If Bitcoin reaches above the $57,670 resistance level and forms a higher high on the daily chart, it could mean that bullish sentiment is strong. This could lead to an increase in Bitcoin’s price, bringing it up to the next resistance level at $59K.