Bitcoin surged to $57,000 by the end of the week on July 7 after bouncing back from a significant drop in value. The price of BTC managed to stabilize around 8% above its low of $53,500 for the week, which was the lowest point since late February.
Despite some weekend trading activity, Bitcoin bulls were able to recover some of the lost ground, making the previous lows seem like an anomaly. Popular trader Rekt Capital noted the recent downward trend in his analysis, highlighting the deviation in Bitcoin’s price.
BTC just missed hitting a crucial price point at its latest daily close of $58,250, falling short of the desired $58,450 mark. Rekt Capital believed that achieving this target could push the price up to around $60,600.
Data from CoinGlass revealed that $58,018 was a key level attracting the most liquidity at the time, with the price inching closer to bid support below $57,000. Long liquidations for BTC between July 4 and 5 totaled over $220 million, contributing to a crypto-wide total of $750 million.
Short positions were closed over the weekend as the price of Bitcoin reached local highs of $58,500. Traders also observed positive signals in Bitcoin’s RSI readings, hinting at a potential bullish divergence.
Analyst Wolf noted the strength of the bulls in pushing the price higher than expected, while Scott Melker, also known as the “Wolf of All Streets,” suggested that a strong daily close could signal the end of the current correction and establish a new price floor for BTC. The daily RSI for Bitcoin was at 32.7, marking its most oversold level since August 2023.
It’s important to note that this article does not provide investment advice, and readers should conduct their own research before making any financial decisions.