It seems that Bitcoin is starting the week on the right foot, suggesting the end of the correction that lasted throughout June. As investors continue to ponder Bitcoin’s July price trajectory, on-chain data, price history, and strategic transactions point to an optimistic July. Despite short-term volatility, many investors remain optimistic about Bitcoin’s long-term prospects. Notably, the data shows an interesting $500 million increase in bids below the spot price and an increase in open interest, as pointed out by popular crypto analyst Daan Crypto Trades.
Bitcoin Investors Bid $500 Million Under Price
Bitcoin traded for most of the weekend just above $61,000 as bulls struggled to prevent another dip below $60,000. According to a BTCUSDT chart shared on social media over the weekend by Daan Crypto Trades, many strategic investors positioned themselves below the price level to jump into Bitcoin in the event of a break below $50,000.
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This exciting strategy totaled over $500 million in buys over the weekend in price ranges from above $60,500 to below $58,500. The bids create a solid base of buying pressure that prevents the price from falling further. This creates intense support levels, making it extremely unlikely that we will see a capitulation-style price collapse below $60,000 any time soon.
Furthermore, Daan Crypto Trades pointed out a corresponding increase in Bitcoin’s open interest. The latest data from CoinGlass supports this claim, with a 3.11% increase in open interest across various crypto exchanges in the past 24 hours. This increase in open interest represents the inflow of new money into the market, which suggests a bullish and optimistic sentiment among traders.
#Bitcoin More than $500 million in bids were placed below the price (but mostly withdrawn) and open interest rose.
I doubt we’ll get our usual weekend price action as mentioned. Too much action relatively speaking.
The end of the quarter tends to bring about some interesting movements. https://t.co/4rRSjZMGhz pic.twitter.com/7SJh6EYs7J
– Daan Crypto Trades (@DaanCrypto) June 29, 2024
What to expect in July
Bitcoin’s price action in June definitely surprised many investors. Particularly, the digital asset fell 9.85% in June, reversing an 11.07% increase in May. This shows the volatile nature of cryptocurrencies and reflects the ups and downs of Bitcoin over the years. Naturally, this has led to more cautious strategies by traders on how to approach their Bitcoin positions in the new month.
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At the time of writing, Bitcoin is trading at $63,200 and is up 3% in the last 24 hours. If history repeated itself, Bitcoin would likely see a surge in July. As noted by crypto analyst Ali Martinez, when Bitcoin has had a negative June, it tends to rebound strongly in July. In fact, negative price action in June preceded a median return of 7.98% and a median return of 9.60% in July. Similar price action could see Bitcoin end the month between $68,000 and $69,500.
Historically, when #Bitcoin had a negative June, tends to recover strongly in July. In fact, $BTC it delivered an average return of 7.98% and a median return of 9.60% during this month. pic.twitter.com/fJaIwc7Eob
-Ali (@ali_charts) June 30, 2024