The price of Bitcoin (BTC) continued its downward trend on July 4, falling by 3.34% over the last 24 hours and 5.82% over the past week. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin reached a one-month low of $56,709 after breaking below the psychological support level of $60,000.
In the same period, the total cryptocurrency market capitalization dropped by 4.23%, settling at $2.13 trillion. The trading volume surged by 42%, indicating significant selling pressure in the market.
Bitcoin’s decline below $57,000 on June 4 triggered widespread liquidations across the crypto market. Coinglass data revealed that $98.04 million worth of long Bitcoin positions were liquidated in the last 24 hours, compared to $22.6 million in short positions. Overall, $333.1 million in leveraged long crypto positions were liquidated, against $50.52 million in short positions.
Despite the bearish trend led by Bitcoin, analysts remain hopeful about a potential recovery to higher levels. Bitcoin analyst Jelle noted on June 4 that Bitcoin had rebounded above the 200-day EMA, suggesting a possible bullish divergence from the daily RSI if the price closes above this level.
Another analyst, Skew, highlighted that Bitcoin is retesting the 200-day MA for the first time since October 2023, just before the approval of spot Bitcoin ETFs. Skew attributed the recent price drop to a “trend rejection and reversal” around the $64,000 mark.
At the time of writing, Bitcoin had moved back above the 200-day EMA, which is currently at $58,256. Analyst Rekt Capital described Bitcoin’s current 22% pullback as “above-average” and lasting about 45 days. Pseudonymous analyst Yoddha expressed confidence that the “local bottom is in” for Bitcoin. Moustache shared a similar view, noting that retesting the 200-day EMA has consistently marked a bottom range over the past 18 months.
In another analysis, it was suggested that the current correction is a healthy pullback setting up Bitcoin for a massive breakout after completing the Wyckoff method reaccumulation phase.
Daan Crypto Trades pointed out that over $200 million in long positions had entered as Bitcoin moved back above the 200-day SMA. CoinGlass data indicated that the $57,615 level is a significant area of 12-hour bid liquidity, with approximately $24.61 million in buy orders. This area might provide the necessary demand pressure to pull Bitcoin out of its extended downtrend.
This article does not provide investment advice or recommendations. All trading and investment decisions involve risk, and readers should conduct their own research before making any decisions.