Since June, the price of Bitcoin has been experiencing significant drops, with the asset falling below $57,000 today and reaching a two-month low. At the time of publication, the price of Bitcoin was quoted at $56,905.16, down 5.9% in the last 24 hours.
On July 4, cryptocurrency analysis platform Santiment observed that the milestone reached by Bitcoin occurred while many cryptocurrency traders bought tokens on the dip when BTC was approaching $60,000.
“Bitcoin has now fallen to a 2-month low, with most altcoins faring far worse. With many traders buying the dip when BTC was nearing $60K, longs have been liquidated aggressively the last couple hours. This goes for other top caps like Ethereum and Solana as well.”
The analysts highlighted investor caution as they see an opportunity to buy on the dip. “Bitcoin fell to $59.4K and Ethereum to $3.1K in the previous hour. The crowd is showing signs of seeing this as a buying opportunity. Ideally, we should wait for their enthusiasm to calm down. The time to buy is when they are impatient and skeptical.”
Renowned cryptocurrency analyst Ali Martinez analyzed the current Bitcoin price action, suggesting that the drop in the leading cryptocurrency may continue.
“The action of Bitcoin price has been brutal, but only $280.9 million in longs have been liquidated and $25.4 in shorts. In the past, we have seen mass liquidation events of over $1 billion! This tells us either the BTC dip is not over yet or shorts are about to get obliterated.”
The expert observed investor sentiment with the current market scenario. According to Martinez, Bitcoin investors are starting to feel anxious as the asset’s decline deepens.
“It now looks like most Bitcoin traders have decided to sell the corn short, creating a liquidation wall at $59,600. So, BTC may rally to obliterate these shorts!”
The turnover volume of Bitcoin (BTC) is $40,474,949,023 in the last 24 hours, representing a 43.90% increase compared to the previous day, signaling a recent rise in cryptocurrency market activity.
Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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