The price of Bitcoin (BTC) continued its downward trend on July 4th, experiencing a 3.34% drop in the past 24 hours and a 5.82% drop in the last week. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin reached a one-month low of $56,709 after losing support at the psychological level of $60,000.
In addition, the total market capitalization dropped by 4.23% in the last 24 hours, bringing it to $2.13 trillion at the time of writing. The significant increase in trading volume, which rose by 42%, indicates a high level of selling activity in the cryptocurrency market.
Bitcoin’s decline below $57,000 on June 4th led to widespread liquidations across the crypto market. Coinglass data reveals that long Bitcoin positions worth $98.04 million were liquidated in the past 24 hours, compared to short liquidations of $22.6 million. Moreover, leveraged long crypto positions worth approximately $333.1 million were liquidated, while short positions amounted to $50.52 million.
Despite the bearish price action in the crypto market, mainly driven by Bitcoin, analysts remain optimistic about the potential recovery of BTC to higher levels. Bitcoin analyst Jelle expressed confidence in a June 4th post on X, stating that Bitcoin has bounced back above the 200-day exponential moving average (EMA). This, according to the analyst, indicates a successful sweep of the lows, followed by a retest of the 200-day EMA and a potential bullish divergence from the daily relative strength index (RSI).
Another analyst, Skew, shared a chart on July 4th showing that the Bitcoin price is retesting the “200D MA” for the first time since October 2023, before the approval of spot Bitcoin ETFs. According to Skew, the recent price drop in Bitcoin has been fueled by a trend rejection and reversal around $64,000.
At the time of writing, the Bitcoin price has rebounded above the 200-day EMA, currently at $58,256, according to Rekt Capital. This analyst also noted that the current 22% pullback in Bitcoin has lasted approximately 45 days, which is considered above average. Pseudonymous analyst Yoddha and Moustache both believe that the local bottom for the price of Bitcoin has been reached, with Moustache highlighting that a retest of the 200-day EMA has historically marked a bottom range over the past 18 months.
Daan Crypto Trades observed more than $200 million in long positions and has entered a position on Bitcoin’s move back above the 200-day SMA. CoinGlass data indicates that $57,615 is a significant area of bid liquidity, with approximately $24.61 million in buy orders. This level of demand could potentially help lift Bitcoin out of its prolonged downtrend.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assessment of risks before making any investment or trading decisions.