Crypto Market Dips Amid ‘Buy the Dip’ Warning, El Salvador Secures BTC, Whale Shifts to ETH
Crypto markets opened the week in the red, with Bitcoin slipping below $108,000 amid broad selling pressure. Santiment warns that rising “buy the dip” chatter on social media could presage further declines, even as the fear and greed index moves back into neutral territory. El Salvador proactively split its 6,724 BTC reserve across 14 wallets to counter potential quantum threats, drawing mixed views on the immediacy of that risk. California Governor Gavin Newsom announced plans for a “Trump Corruption Coin” memecoin to fund voter outreach, underscoring growing political uses of crypto. Meanwhile, a major whale sold 4,000 BTC for approximately 96,589 ETH, signaling a rotation into altcoins and market maturation. Technicals show BTC near $109,500 facing resistance, with downside risk toward $105,000. Ethereum hovers around $4,478, testing support at $4,000 amid talk of an impending altseason. Solana awaits its Alpenglow upgrade, while Jupiter and Dogecoin display mixed volatility after recent rallies. Traders should watch liquidity flows and whale activity, as short-term sentiment remains bearish but could lay groundwork for an eventual altcoin rebound.
Bearish
Sustained selling pressure across major cryptocurrencies and growing “buy the dip” chatter—historically a precursor to deeper corrections—underscore continued downside risk. Bitcoin’s slide below $108,000 and declining ETF inflows reflect weak demand, while a large whale’s rotation into ETH signals diversification of selling supply. El Salvador’s BTC split is a neutral security measure, and political memecoin launches may add market noise and regulatory scrutiny rather than drive sustained gains. Past instances of heightened ‘buy the dip’ sentiment (2020, 2024) preceded further price drops. Overall, short-term momentum remains bearish, though stabilized sentiment metrics leave room for a potential altcoin rebound later in the quarter.