Bitcoin experienced a sharp drop yesterday, hitting a 3-week low of $58.9K, but many traders are now identifying this dip as a prime buying opportunity.
The shift in sentiment came after the release of the US Consumer Price Index (CPI) report, which fueled optimism around potential interest rate cuts. This bullish narrative has helped Bitcoin rebound to $60.6K after spending much of Thursday trading below the $60K mark.
Bitcoin has dropped as low as $58.9K today, returning to a 3-week low. However, traders are identifying this as a dip buy opportunity. The narrative flipped to bullish particularly after the US CPI report announced still likely expected rate cuts. pic.twitter.com/Yet0YTjeiL
— Santiment (@santimentfeed) October 10, 2024
One of the key impacts of the recent price drop was the liquidation of long positions, with Bitcoin long liquidations totaling a massive $290 million during this downturn.
This marks the largest amount of long liquidations in the Bitcoin market since June 2022, a span of 28 months. While this might appear concerning, some traders see it as a healthy market reset, providing an entry point for those looking to buy the dip.
$BTC Long liquidations USD hit $290,000,000 during the recent drop
“This marks the largest total amount of long liquidations since June 2022, a span of 28 months.” – By @JA_Maartun
Full post https://t.co/EdcDlXSrd2 pic.twitter.com/mlpfFseNHM
— CryptoQuant.com (@cryptoquant_com) October 11, 2024
Bitcoin Network Activity Still On The High Side Despite Market Fluctuations
Despite the price volatility, Bitcoin network activity remains robust. Bitcoin transaction fees surged by 32% this week, indicating increased usage of the network even as volatility shows signs of tapering off. This uptick in fees could signal that traders and investors are actively repositioning themselves amid the current market uncertainty.
Bitcoin fees surged by 32% this week, indicating increased network activity even as volatility trends downward. pic.twitter.com/YHE0YLt4aG
— IntoTheBlock (@intotheblock) October 11, 2024
In another development, Bitcoin spot ETFs saw a total net outflow of $121 million on October 10, reflecting a shift in investor behavior during this period of market correction. However, the overall market sentiment appears to remain cautiously optimistic, with traders betting on a potential recovery in the near term.
On October 10, the total net outflow of Bitcoin spot ETF was $121 million, and the net inflow of Ethereum spot ETF was $3.06 million. https://t.co/59u0BnEqLG
— Wu Blockchain (@WuBlockchain) October 11, 2024
As Bitcoin stabilizes around the $60K level, the market continues to watch for further signs of recovery, with many viewing this dip as a chance to accumulate ahead of potential future gains.
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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