Bitcoin recently fell to a three-week low, dipping to $58,900, especially after an encouraging U.S. CPI report raised hopes of potential interest rate cuts. However, traders see this dip as a potential buying opportunity. According to an analysis by Santiment, an on-chain market intelligence platform, the market sentiment has shifted bullish, even as Bitcoin remains under $60,000.
Bitcoin Dip To 3 Week Low
Amid the recent market sell-off, crypto whales have been cashing out more quickly, putting pressure on the bullish sentiment. Bitcoin whales alone sold over 30,000 BTC worth nearly $2 billion in the last three days, plunging the overall crypto market by 0.6%.
As a result, Bitcoin's price has dropped back to levels last seen when the U.S. Federal Reserve made a surprise 50-point interest rate cut in mid-September, now hitting a three-week low at $58,900.
However, recent data from Coinglass shows that liquidations reached $197.08 million across the crypto market, with around 58,823 traders affected in the past 24 hours. Out of these liquidations, $147.45 million came from long positions, with $49.64 million tied to Bitcoin (BTC) derivatives.
In one large loss, a trader on Binance faced a $10.51 million liquidation in a BTC/USDT position. Reflecting market caution, the crypto Fear and Greed Index now stands at 32, signaling “fear.”
Positive Sentiment — Buy The Dip
Despite Bitcoin's slip below the critical $60,000 mark, Santiment's data shows a surprising increase in trader optimism. Historically, Bitcoin has attracted buyers on similar dips, particularly when economic indicators point toward easier monetary conditions.
As the latest CPI data shows inflation cooling, raising hopes for rate cuts. This has boosted optimism among crypto investors, seeing benefits for Bitcoin's growth.
Santiment's analysis highlights that traders are eyeing this dip as a short-term pullback rather than a prolonged downturn, preparing for a potential rebound.