Bitcoin has experienced a volatile week, marked by a surge to new all-time highs followed by a significant dip, prompting dip-buying activity among investors. Here's a breakdown of the key things to know in Bitcoin this week:
1. Price Correction and Dip-Buying:
Bitcoin's price reached a new all-time high of $124,474 before sharply retreating. This dip saw Bitcoin slip below $117,000, marking its steepest pullback in a month. However, on-chain data suggests resilient dip-buying activity. The Coinbase Premium Index climbed, signaling strong U.S. spot demand, and the Kimchi Premium Index turned positive, indicating renewed Korean buying pressure. Crypto trader Hansolar noted that collective buy bids were spread across Coinbase, Bitfinex, and the South Korean market.
2. Institutional Interest:
American institutional investors appear to be viewing the dip as a buying opportunity. The Bitcoin Coinbase Premium Gap witnessed a spike, suggesting that BTC was going for more on Coinbase than Binance, indicating higher buying activity from Coinbase users. This trend aligns with the observation that this investor group has often taken the driving seat in the market since the start of 2024.
3. Stablecoin Flows:
Supporting the bullish undertone, USDC inflows to exchanges surged to $3.88 billion since the price dip, suggesting traders are gearing up to deploy capital. Crypto analyst Maartunn notes that investors are treating the dip as a buy-the-dip opportunity.
4. Market Analysis and Predictions:
Despite the dip-buying, some analysts remain cautious. Trading platform Material Indicators flagged a "pretty solid" down signal, reducing the probability of a Bitcoin breakout this week. Popular trader Daan Crypto Trades identified $112,000 as a key level to watch on the downside, and $120,000 as a level for potential reversal. On-chain analyst BorisVest suggested that Bitcoin's price could experience selling pressure over the next one to two weeks, based on the flow of coins on Binance.
5. Ghost Month Concerns:
Concerns remain about seasonal weakness during Asia's "ghost month," which could extend the downturn. Historically, Bitcoin has shown a tendency to sell off during this period, with an average peak decline of roughly 21.7% since 2017. A similar drawdown could drag prices into the $105,000–$100,000 range.
In related news, Gemini, the Winklevoss-founded crypto exchange, has filed to list on Nasdaq under the ticker GEMI. Japan's FSA is expected to approve yen-denominated stablecoins. Strategy co-founder Michael Saylor signaled an impending Bitcoin purchase by the company, as the price of Bitcoin hovered below its all-time high. The company's most recent Bitcoin acquisition occurred recently, bringing its total holdings to a substantial amount.
