Bitcoin bounces off the $60,000 mark again! Analysis of July 2, 2024

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

Situation of Bitcoin (BTC) Price

After falling 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 appears to have been activated, with the Bitcoin price bouncing off this support and subsequently crossing the $62,300 level, which appears to have served as short-term resistance. Thus, the Bitcoin price crossed the $63,000 threshold before marking a new high around $63,700. Bitcoin remains above the POC considered since the BTC rebound.

At the time of writing, Bitcoin is trading around $62,600. The medium to long-term structure of Bitcoin remains positive, but 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, which illustrates the period of indecision that the cryptocurrency is undergoing. Fortunately, we can rest easy with the 200-day moving average, which is still positioned below the Bitcoin price and remains upwardly oriented. Of course, on the price dynamics side, we can observe that it has resumed stronger, as evidenced by the BTC price itself and the oscillators. All these elements show genuine buying interest, suggesting an ongoing bullish reversal for Bitcoin price.

The current technical analysis was carried out 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 real estate 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 appears to have followed the trajectory of its underlying price. We have seen 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 would not be surprising if most new positions on BTC/USDT contracts are aimed at buying.

The liquidation heatmap of the past few months indicates that BTC/USDT has fueled buying interest upon reaching the liquidation zone around $60,000, as indicated in the June 25 analysis. Currently, the main liquidation zones of the past three months are still above the current price: especially 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 see a massive trigger of orders, potentially increasing the volatility of the cryptocurrency. These zones therefore represent important points of interest for investors.

Hypotheses for Bitcoin (BTC) Price

As long as the Bitcoin price manages to stay above $60,000, we can expect a return of BTC above $64,500. The next resistance to consider, if the bullish move continues, would be the $67,000 zone. Higher we can highlight $70,000 and more. At this point, this would represent an increase of approximately 11%. If Bitcoin price does not stay above $60,000, one can consider support to buy interest between $59,000 and $58,500. The next level to consider, if the bearish movement continues, would be around $57,500. Below we can highlight the price range between $56,500 and $55,500. At this point, that would represent a drop of close to 11%.

Closure

After a significant decline, Bitcoin quickly recovered and regained a key price level. This pullback made it possible to reach the lower part of the range dating back to March. Despite a long period of indecision, the medium and long-term structure of Bitcoin remains bullish. So, this renewed buying interest points to an ongoing potential bullish reversal for Bitcoin. However, it will be crucial to carefully observe the price reaction at the various key levels to confirm or disprove the current hypotheses. It is also important to remain vigilant in every scenario for possible “false cuts” and “squeezes”. Finally, let us remember that these analyzes are based solely on technical criteria and that cryptocurrency prices can also develop rapidly based on other more fundamental factors.

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Family Trading is a community of own-account traders active since 2017 that offers lives, educational content and mutual assistance around the financial markets, including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.

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