Greed

Plunge

Ethereum

Bitcoin

when

<h2 id="key-points">Key Points</h2>
<ul>
 <li>“Buy the dip” calls increased after Bitcoin’s value fell below $60,000, affecting other cryptocurrencies such as Ethereum.</li>
 <li>The Fear and Greed Index suggests a phase of accumulation, but on-chain data indicates potential further decline in Bitcoin’s value.</li>
</ul>
<p>Calls for buying the dip in the cryptocurrency market surged on 3rd July after <a href="https://coineagle.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin (BTC)</a> value dipped below $60,000. This drop affected other cryptocurrencies, including <a href="https://coineagle.com/price/ethereum/" rel="noopener noreferrer nofollow">Ethereum (ETH)</a>.</p>
<p>At the time of writing, BTC was trading at $57,598, marking a 4.88% decrease in the last 24 hours. Despite this, many market participants viewed the correction as an opportunity to purchase at a lower price.</p>
<h2 id="market-sentiment-and-buying-opportunities">Market Sentiment and Buying Opportunities</h2>
<p>The on-chain analytics platform, Santiment, indicated a surge in “buy the dip” mentions. However, such calls do not always result in a market bounce. A bounce typically happens when a large portion of the crypto market doubts the increase in prices.</p>
<p>Santiment also suggested waiting for market enthusiasm to settle down before buying, as the best time to buy is when market participants are impatient and skeptical.</p>
<p>To gauge market sentiment, the crypto fear and greed index was examined. This index measures the emotional behavior and sentiment of market participants, with values ranging from 0 to 100. When the market is in correction and prices are falling, people tend to be fearful. Conversely, when prices are rising sharply, greed appears.</p>
<h2 id="bitcoin-under-pressure">Bitcoin Under Pressure</h2>
<p>Blockchain analytics platform IntoTheBlock revealed that Bitcoin had breached a critical demand zone at $60,000, suggesting the next significant demand zone lies between $40,000 and $50,000.</p>
<p>If Bitcoin continues to fall and drops below $56,000, it could slip into this region, potentially leaving many holders at a loss. To prevent this, bulls must defend BTC from falling under $55,000. However, this could be challenging as institutions continue to sell BTC.</p>
<p>For example, Lookonchain reported that the German government has transferred a combined $249.50 million worth of Bitcoin to <a href="https://coineagle.com/exchange/gdax/" rel="noopener noreferrer nofollow">Coinbase</a>, Kraken, and Bitstamp. When such events occur, Bitcoin faces selling pressure and may struggle to rebound. As a result, market participants may continue to buy the dip until prices stabilize.</p>

Crypto Enthusiasts Rush to ‘Buy the Dip’ Amidst Bitcoin’s Shocking Plunge

Table of Contents

CoinEagle.com

Other articles published on Jul 5, 2024

Crypto Collapse:Global Market Cap Plummets Below $2 Trillion

Notcoin price action and the lessons for Pi Network

$100M Bitcoin liquidated as BTC drops: Will ETF investors panic sell?

July 2024 Top-Reviewed Crypto Projects

ETH Price Drop Triggers Whale Liquidations on Compound and Aave

5 core business areas where AI can drive revenue

Join our free newsletter for daily crypto updates!