The downward trend of Bitcoin continues, with its price falling 4% to below $58,000 in the past 24 hours.
As BTC broke its key support level of $60,000, the next support is at $57,000. Investors are now faced with a critical decision: whether to buy the dip or wait for further declines.
On-chain data provider Santiment reported significant sell-offs of Bitcoin and altcoins, reaching two-month lows. The price of Ethereum also dropped below $3,200, despite the expected launch of the ETH ETF on July 15.
Santiment suggests that the current sentiment in the crypto community views this decline as a potential buying opportunity. However, they recommend investors to wait for the first wave of enthusiasm to pass before making new purchases. According to the analytical firm, the ideal buying moment is when traders become skeptical and impatient. The recent price drop in BTC led to aggressive liquidations, with many traders buying the dip when the price was around $60,000. This trend was also observed in other altcoins such as Ethereum and Solana, which experienced even sharper declines.
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Against this market volatility, Bitcoin whale activity has surged. Recently, a large wallet deposited 1,800 BTC ($106 million) into Binance. Over the past week, this whale transferred a total of 5,281 BTC ($323 million) to Binance at an average price of $61,196, and now holds 6,068 BTC ($358 million). It is reported that this user incurred a loss of $20 million in the recent trades.
The ongoing decline in BTC price presents both a challenge and an opportunity for investors. While some perceive the current dip as a buying opportunity, caution is advised. Waiting for market sentiment to shift towards skepticism and impatience may be a more prudent strategy before making new investments.