Why Bitcoin’s dip has pushed it back into the buy zone

Bitcoin has slid back into a price range that, historically, has turned out to be a powerful buying zone for long-term investors. Sentiment is gloomy, social media is full of “crypto is dead” takes, and ETF flows have cooled. Yet these are often the exact conditions that produce the best entries for the next leg of a bull market.

Bitcoin’s historical accumulation zone

Recent market data shows Bitcoin trading well below its recent highs, with many traders capitulating or stepping to the sidelines. This is exactly the kind of environment that has marked past accumulation zones. In previous cycles, the periods when “everyone hated crypto” often turned out to be the moments when buyers later looked like geniuses.

That doesn’t mean the exact bottom is in. Bitcoin could still dip into the low $50,000s or even the $40,000s. But from a cycle perspective, we’re in the kind of window where dollar-cost averaging (DCA) has historically worked very well for patient investors. If you’re interested in a deeper dive on this strategy, it’s worth reading how another investor is buying Bitcoin and altcoins during this dip.

Key indicators: MACD, RSI, and moving averages

On the technical side, Bitcoin is still under pressure:

• Price is trading well below the 20-day and 50-day exponential moving averages (EMAs), a sign of short-term weakness.
• The daily Relative Strength Index (RSI) is around 25–26, which is deeply oversold (below 30 is typically considered oversold).
• The MACD (Moving Average Convergence Divergence) is starting to flatten, hinting that bearish momentum may be slowing and a bullish crossover could form in the coming days or weeks.

One especially interesting signal is the two-week MACD. Historically, a bullish crossover on this higher timeframe has confirmed every major Bitcoin market bottom. It doesn’t catch the exact wick low, but it has reliably marked the shift from bear market to bull market. That crossover has not happened yet, which suggests the macro bottom may still be forming rather than fully confirmed.

For now, a key level to watch is the $59,000 area. Holding above that zone on pullbacks would help build a stronger base for any future rally.

Bitcoin ETF flows: outflows slowing

Spot Bitcoin ETFs have been a major driver of demand this cycle, so flows in and out of these products matter. Recently, outflows have slowed:

• A recent day saw around $91 million in net outflows, much less than the roughly $300 million that left on a prior panic day when the NASDAQ sold off sharply.
• While BlackRock’s ETF sold, other issuers like Fidelity, Bitwise, and ARK were net buyers, partially offsetting the selling pressure.

If large issuers like BlackRock return to net buying while Bitcoin trades at a discount to recent highs, Wall Street may start to see this as a bargain entry. Slowing outflows are not the same as strong inflows, but they are a step in the right direction.

Ethereum: big buyers keep accumulating

While Bitcoin dominates headlines, Ethereum is quietly seeing aggressive accumulation from institutional players. One major buyer recently added about 126,971 ETH (around $214 million), bringing their total holdings to roughly 5.54 million ETH—about 4.6% of the circulating supply.

Despite being down billions on paper, this buyer continues to add, signaling strong long-term conviction. On the charts, ETH looks similar to BTC:

• It is oversold on the daily timeframe.
• Price action has been weak but is starting to stabilize.
• The broader structure still suggests we’re in a corrective phase within a larger bull cycle.

For investors who believe in Ethereum’s long-term role in DeFi, NFTs, and as a base layer for smart contracts, these kinds of pullbacks have historically been attractive DCA opportunities, especially when big players are still buying.

Hacks and smart-contract risk in a bear phase

Alongside price weakness, the market has seen more protocol blow-ups and hacks. One project saw roughly $30 million worth of tokens dumped after an alleged exploit, sending its price down about 90% in minutes. Another lesser-known project, Sahara, also reportedly suffered a hack soon after.

These incidents are common in bear or corrective phases, when liquidity is thinner and security practices get stress-tested. It’s also a reminder that:

• Smart-contract risk is real—especially in smaller, unaudited, or poorly governed projects.
• Teams sometimes know about vulnerabilities before the public, which can create opportunities for abuse or poorly handled “rescues.”

Sticking to higher-quality assets and well-audited protocols can help reduce this risk, especially when the market is already under pressure.

Are we in a new tech bubble? IPOs, AI, and SpaceX

Beyond crypto, the broader tech market is buzzing with huge IPOs and valuations, especially around AI and space. Some investors are comparing this to the late 1990s dot-com boom, when every new IPO was called “the top,” yet the NASDAQ kept climbing for years before finally peaking.

Back then, companies like Netscape, Yahoo, Amazon, and eBay all went public, and each was touted as the blow-off top. None of them actually marked the final peak. From one major IPO point, the NASDAQ nearly doubled again before the real top.

Today, we’re seeing:

• SpaceX preparing to go public at a valuation around $1.7–$2 trillion, with price-to-sales ratios initially quoted above 40x before moderating closer to the high 30s.
• AI giants like OpenAI and Anthropic filing for IPOs that could also command trillion-dollar-plus valuations.

Historically, IPOs that debut at more than 40x sales have underperformed the market by a wide margin over the following three years. That doesn’t mean these companies are bad—many are genuinely transformative—but it does suggest that paying extreme multiples at the IPO can be risky.

Compared to the dot-com era’s “pets.com” style garbage listings with no earnings, today’s AI and space companies have real products and revenue. Still, they may be priced for perfection, and the average IPO drawdown in year one is around 50%. For most investors, patience and waiting for better valuations can be smarter than chasing the initial hype.

Tech stocks on the radar: Marvell, ServiceNow, Robinhood, Galaxy Digital

Several listed companies that intersect with AI, cloud, or crypto are also worth watching during this corrective phase.

Marvell Technology

Marvell, a semiconductor and networking company, is being added to the S&P 500, which has fueled a strong rally. However, after a big run-up, some investors are waiting for a deeper pullback before building a larger position. The idea is to let the post-announcement hype cool off and look to accumulate closer to key moving averages or support levels.

ServiceNow

ServiceNow has pulled back toward its 20-day EMA and is trading under its 200-day EMA, which can create a more attractive accumulation zone for long-term investors. If the stock spends time consolidating below the 200-day while fundamentals remain strong, it may offer a better risk–reward entry.

Robinhood

Robinhood’s share price remains in a downtrend, but its long-term story is still compelling to many. As a leading retail trading platform with growing exposure to crypto, options, and equities, it’s easy to imagine a scenario where Robinhood benefits from the next wave of retail speculation. Some investors who bought during earlier periods of fear are already in profit and are considering adding more on weakness.

Galaxy Digital and the AI data center angle

Galaxy Digital, a crypto-focused financial services and investment firm, has been moving higher after breaking above its 200-day EMA and successfully retesting it as support. The big narrative driver here is its Helios AI data center buildout.

Key points include:

• Management expects more than $2 billion in contracted revenue by the end of the summer from Helios, with about 10% of that revenue starting to show up this quarter.
• The company has hinted that the next major tenant announcement for Helios could come by early July or, at the latest, by the end of summer.
• If those contracts materialize as expected, the market may reprice Galaxy Digital significantly higher over time.

For investors who want exposure to both crypto and AI infrastructure, Galaxy Digital is an interesting hybrid play, though it remains a volatile stock.

How to think about this phase of the cycle

Across Bitcoin, Ethereum, and related tech and crypto stocks, the pattern is similar: prices are weak, sentiment is negative, and yet long-term structural trends remain intact. Historically, these phases have been where disciplined investors quietly accumulate while the crowd declares the bull market over.

Some practical takeaways:

• Don’t assume every dip is the final bottom—but recognize that deeply oversold conditions and heavy pessimism often mark good long-term entries.
• Focus on quality: Bitcoin, Ethereum, and fundamentally strong companies are more likely to survive and thrive into the next cycle.
• Be cautious with new, overhyped IPOs and small-cap tokens, especially those with unclear revenue or security practices.
• Consider DCA instead of trying to time the exact bottom. Many successful investors simply buy more when fear is high and prices are depressed. You can see another example of this mindset in our guide on buying the crypto crash and what one investor is DCA-ing into.

Bitcoin may not have printed its final cycle low yet, but all the classic ingredients of an accumulation zone are starting to line up. For those with a long enough time horizon, this is exactly when it pays to pay attention.