Bitcoin Bounces Off the $60,000 Mark Again! Analysis of July 2, 2024

After reaching $60,000, Bitcoin has regained interest, allowing for a promising rebound. Let’s analyze the future prospects of BTC’s price together.

Situation of Bitcoin (BTC) Price

After plunging to $58,500, Bitcoin quickly managed to reposition itself above $60,000. This price level corresponds to the lower part of the range formed since the beginning of March 2024. Buying interest seems to have been triggered, with the Bitcoin price bouncing off this support and subsequently crossing the $62,300 level, which seemed to serve as short-term resistance. Thus, the Bitcoin price crossed the $63,000 threshold before marking a new peak around $63,700. Bitcoin remains above the POC considered since the BTC rebound.

At the time of writing this text, Bitcoin is trading around $62,600. The medium to long-term structure of Bitcoin remains bullish, however, the fact that it is below its 50-day moving average casts doubt on the continuation of this trend. It is worth noting that it is now horizontal, illustrating the period of indecision that the cryptocurrency is undergoing. Fortunately, we can rest assured with the 200-day moving average, which is still positioned below the Bitcoin price and remains upward-oriented. On the price dynamics side, we can naturally observe that it has resumed stronger, as evidenced by the BTC price itself and the oscillators. All these elements demonstrate genuine buying interest, suggesting an ongoing bullish reversal for Bitcoin price.

The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. You will find Lives, educational content, and support around financial markets in a professional and warm atmosphere.

Focus on Derivatives (BTCU/SDT)

The open interest in Bitcoin perpetual contracts seems to have followed the trajectory of its underlying’s price. We observed an entry of positions from speculators since the reintegration of $60,000. Given the direction of the price, liquidation data showing mainly seller exits, and a positive funding rate, it wouldn’t be surprising if most new positions on BTC/USDT contracts are oriented towards buying.

The liquidation heatmap of the past few months indicates that BTC/USDT has sparked buying interest upon reaching the liquidation zone around $60,000, as indicated in the June 25th analysis. Currently, the most significant liquidation zones of the last three months are still above the current price: notably at $65,000, then higher at $67,500. Below, we can note the zones around $60,000 and, lower, the thin zone of $56,850. If the market approaches these levels, we could witness a massive triggering of orders, potentially increasing the cryptocurrency’s volatility. These zones, therefore, represent major points of interest for investors.

Hypotheses for Bitcoin (BTC) Price

• As long as Bitcoin price manages to stay above $60,000, we can anticipate a return of BTC above $64,500. The next resistance to consider, if the bullish movement continues, would be the $67,000 zone. Higher, we can highlight $70,000 and more. At this point, it would represent an increase of approximately 11%.

• If Bitcoin price does not stay above $60,000, one could consider support from buying interest between $59,000 and $58,500. The next level to consider, if the bearish movement continues, would be around $57,500. Lower, we can highlight the price range between $56,500 and $55,500. At this point, it would represent a drop close to 11%.

Conclusion

After a significant decline, Bitcoin quickly rebounded, regaining a key price level. This rebound allowed reaching the lower part of the range dating from March. Despite a prolonged period of indecision, the medium and long-term structure of Bitcoin remains bullish. Thus, this renewed buying interest suggests an ongoing potential bullish reversal for Bitcoin. However, it will be crucial to closely observe the price reaction to the different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant to potential “fake outs” and “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.