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▲ Bitcoin (BTC)/AI Generated Image
Bitcoin (BTC) retreated after breaking above $61,000, but a combination of short position liquidations and a simultaneous rise in major altcoins reignited the debate about the cryptocurrency market bottom.
According to Benzinga, a cryptocurrency specialized media outlet, on July 1 (local time), Bitcoin surpassed $61,000 that evening before being pushed down to the $59,000 range by selling pressure. Trading volume in the past 24 hours increased by 11%, and the tug-of-war between upward and downward trends continued.
Ethereum (ETH) rose to the mid-$1,600s before partially retreating, and XRP and Dogecoin (DOGE) also moved into positive territory. According to Coinglass data, over $450 million worth of positions were liquidated in the cryptocurrency market in the past 24 hours, with short position liquidations amounting to $279 million.
Bitcoin's open interest increased by 1.8% in the past 24 hours. During the same period, Bitcoin taker buying volume exceeded selling volume, indicating that bullish sentiment is being maintained in the market. Individual investors and whale derivatives traders on Binance also maintained bullish positions on Bitcoin.
The global cryptocurrency market capitalization increased by 2.78% in the past 24 hours, reaching $2.07 trillion. Among major cryptocurrencies, Bitcoin rose by 2.91%, Ethereum by 2.86%, XRP by 2.12%, Solana (SOL) by 6.46%, and Dogecoin by 1.75%. Cryptocurrency-related stocks also showed strength, with Strategy (MSTR) rising by 7.43% and BitMine Immersion Technologies (BMNR) by 6.31%.
On the other hand, the U.S. stock market paused for breath. The Dow Jones Industrial Average closed down 13.96 points, or 0.03%, at 52,305.24, the S&P 500 Index fell 0.22% to 7,483.23, and the Nasdaq Composite finished trading down 0.66% at 26,040.03. Federal Reserve Chairman Kevin Warsh stated at an international conference that “inflation is too high” but did not comment on what decisions the central bank would make at its July meeting. The CME Group FedWatch tool reported that the market is pricing in a 71% chance of an interest rate freeze in July, while also seeing an almost 50% chance of a rate hike in September.
Famous cryptocurrency analyst Ali Martinez stated that the cryptocurrency market has reached a bottom, citing TD Sequential buy signals in Bitcoin, Ethereum, XRP, and Solana. He said, “The monthly charts suggest a coordinated macro reversal pattern,” adding, “Historically, when monthly buy signals are confirmed simultaneously across multiple assets, it indicates selling exhaustion and a high probability of a long-term market bottom.” However, Rekt Capital pointed out that Bitcoin closed its monthly candle below the 50-month exponential moving average, located at approximately $63,000, and stated, “Typically, after losing the 50-month exponential moving average, the price tends to convert it into new resistance and leads to further declines over time.”
[Article Key Summary]
-Bitcoin retreated to the $59,000 range after breaking above $61,000, but increased trading volume and open interest were presented as signs of sustained bullish sentiment.
-In the past 24 hours, over $450 million worth of positions were liquidated in the cryptocurrency market, with short position liquidations reaching $279 million.
-Ali Martinez argued for a market bottom based on simultaneous buy signals for major cryptocurrencies, but Rekt Capital warned of the possibility of further declines due to the break below the 50-month exponential moving average.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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