Bitcoin has recently fallen to a low of $56.7K, while Ethereum has dropped to $3.1K, prompting many traders to see this as a “buy the dip” opportunity.
However, the best strategy might be to wait until the initial rush subsides. The ideal time to buy is when the market sentiment shifts to impatience and skepticism.
📉 Bitcoin has just dropped to as low as $59.4K and Ethereum to $3.1K in the previous hour.
The crowd is showing signs of seeing this as a buy the dip opportunity. Ideally, we wait for their enthusiasm to settle down. The time to buy is when they are impatient and skeptical. pic.twitter.com/5C1BmEn8Av
— Santiment (@santimentfeed) July 3, 2024
Today, Ethereum has declined by over 5%, currently trading at $3,126. This downturn puts a significant whale, who has a long position in Ethereum, at risk of liquidation.
This whale deposited 12,734 ETH (around $40 million) into Compound and borrowed $31.4 million in stablecoins, with a precarious health rate of just 1.06. If Ethereum’s price drops to $2,984, this position will be forcibly liquidated.
As the market declines, the whale who is long $ETH is on the verge of liquidation!
He deposited 12,734 $ETH($40M) to #Compound and borrowed $31.4M stablecoins, with a health rate of only 1.06.
When the price of $ETH drops to $2,984, he will be liquidated.
Address:… pic.twitter.com/lP9877HjCJ
— Lookonchain (@lookonchain) July 4, 2024
Other Bitcoin and Ethereum Market Insights To Watch
Despite the crypto market sell-off, the options market remains optimistic. There is still significant interest in ETH call options for September and December expiries, indicating that traders are betting on a recovery.
Additionally, liquidation clusters for both Bitcoin and Ethereum are heavily skewed to the upside, which could lead to potential short squeezes. The approval of S-1 forms is also on the horizon, which could result in a sharp rebound in Ethereum’s price.
QCP: Despite the sell-off in crypto, the options market is still optimistic as we continue to see interest heavily skewed towards ETH Calls for Sep and Dec expiries. Liquidation clusters on BTC and ETH are heavily skewed to the topside, opening up potential short squeezes. With…
— Wu Blockchain (@WuBlockchain) July 4, 2024
The current sentiment suggests a cautious approach. With Ethereum nearing critical levels that could trigger liquidations, and the market showing early signs of buying the dip, it may be wise to wait for a more stable entry point. Strategic timing is crucial, especially as the market navigates these volatile conditions.
In summary, while the recent declines in Bitcoin and Ethereum present potential buy opportunities, patience and careful observation are essential. The ongoing market dynamics, particularly around key liquidation levels and options market interest, will significantly influence price movements in the coming days.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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