Bitcoin (BTC) closed the week ending July 7th at approximately $57,000, recovering from a significant downturn in the market. The BTC/USD 1-hour chart, sourced from TradingView, reflects this rebound.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin’s price stabilized around 8% above its weekly low of $53,500, recorded shortly after the July 5th daily close. This marked BTC/USD’s lowest point since late February. Despite unexpected weekend trading activity, Bitcoin bulls managed to reclaim lost ground, minimizing the impact of recent sharp declines.
Highlighting the market’s recent turbulence, prominent trader and analyst Rekt Capital summarized the situation in a recent analysis posted on X (formerly Twitter). The BTC/USD chart sourced from Rekt Capital/X illustrates this volatility.
BTC/USD narrowly missed a crucial price target in its latest daily close at $58,250, falling short of the desired $58,450 threshold. Rekt Capital suggested that achieving this level could potentially propel Bitcoin’s price upwards to approximately $60,600. Another chart from Rekt Capital/X visualizes this potential price movement.
Real-time data from CoinGlass indicated that $58,018 represented a key level attracting significant buying interest, although BTC’s price continued to test support levels below $57,000. CoinGlass also reported significant liquidations in the crypto market, totaling over $750 million across various cryptocurrencies from July 4th to 5th. A liquidation heatmap from CoinGlass provides a snapshot of this activity.
Following the liquidations, short positions increased over the weekend, with trader Daan Crypto Trades noting closures as Bitcoin approached local highs around $58,500. Daan Crypto Trades provided insights into this development.
Positive sentiment was bolstered by observations on Bitcoin’s Relative Strength Index (RSI), with traders noting encouraging signals and a bullish divergence on daily timeframes. Wolf, a social media analyst, observed this trend, noting the resilience of Bitcoin’s market.
Scott Melker, also known as the “Wolf of All Streets,” highlighted the significance of Bitcoin’s recent daily closing strength, suggesting potential implications for establishing a long-term price floor. Melker’s analysis was shared in his recent post on X, accompanied by a BTC/USD 1-day chart sourced from TradingView, which includes RSI data.
At the time of reporting, Bitcoin’s daily RSI stood at 32.7, marking its most oversold level since August 2023. It is important to note that this article does not provide investment advice, and readers are encouraged to conduct their own research and analysis before making any investment decisions.