Will We Be Fooled by a Fake Rebound Again? Crypto Market's Lifeline is Securing a $2.08 Trillion Market Cap

▲ Bitcoin (BTC)/AI Generated Image

The cryptocurrency market is showing signs of a rebound again. However, the real test for this uptrend lies in whether it can recover $2.08 trillion.

According to crypto media outlet BeInCrypto on July 1 (local time), the total cryptocurrency market cap rose by 0.59% on that day. The total market cap has held the $2.01 trillion support level since June 25, with buying pressure entering whenever selling pressure threatened that zone, preventing further declines.

However, there are still areas to confirm before concluding that the market has entered a full recovery. BeInCrypto analyzed that a daily close above $2.08 trillion would strengthen recovery signals, and a breakthrough of $2.16 trillion could lead to a broader uptrend.

Bitcoin (BTC) temporarily recovered to $59,000 during the day after defending the $58,030 support level on the 8-hour chart. However, Bitcoin remains within a downtrend channel, and as of July 1, it was down 1.4%. The slight increase in trading volume from June 29 to June 30 supported the rebound attempt, but the cautious stance of the Federal Reserve and Middle East tensions continued to limit demand for risk assets.

If Bitcoin moves towards $59,816, the short-term uptrend in the cryptocurrency market could be sustained. Conversely, if it falls below $58,030, the day's rebound could be erased. BeInCrypto pointed out that a breakthrough of the psychological resistance level of $60,000 is necessary for a definitive shift in the short-term trend.

Among altcoins, Stellar (XLM) showed the strongest movement, surging 11.54% in 24 hours. This rise is attributed to a combination of anticipation for the Protocol 27 mainnet upgrade vote scheduled for July 8 and expectations for its role as a settlement token in DTCC's tokenization services. Whether Stellar can maintain the $0.20 level will be a key variable for further upside.

[Article Key Summary]

-The total cryptocurrency market cap rose by 0.59% on July 1, holding the $2.01 trillion support level.

-Bitcoin defended the $58,030 support level, but a short-term trend reversal is limited until it breaks $60,000.

-Stellar surged 11.54% in 24 hours amid anticipation for the Protocol 27 upgrade vote and DTCC settlement token expectations.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*