Bitcoin (BTC) Shows Bullish Signals Amid Extreme Distrust... Will It Reclaim $70,000?

▲ Bitcoin (BTC), Solana (SOL), Ethereum (ETH), Bull Market/AI Generated Image

Bitcoin (BTC) is testing the possibility of a mid-$70,000 rebound in a market segment that has been abandoned, simultaneously displaying a bullish divergence on the weekly Relative Strength Index (RSI) and a falling wedge pattern.

Lark Davis, host of the cryptocurrency podcast The Lark Davis Show, analyzed in a video uploaded on July 2 (local time) that while extreme distrust has spread throughout the Bitcoin market, signs of a potential rebound on the charts are increasing. Davis explained that after a weekly RSI bullish divergence appeared in 2022, a few weeks to months of sideways movement followed, after which the price rose sharply. Currently, while the price has made lower lows, the RSI may have formed higher lows, suggesting that this is a phase of confirming a rough bottom.

Analysis also suggests that Bitcoin is moving towards the top of a falling wedge pattern after maintaining support within it. Davis believes that if this structure breaks upwards, the price could rise to the mid-$70,000 range. He also cited expectations for a US cryptocurrency market structure bill as a market catalyst, stating that SEC Commissioner Hester Peirce remains optimistic about its passage this summer.

Solana (SOL) was mentioned in the video as one of the strongest ecosystem growth assets. Davis set a target price of $97 for a Solana long position entered at $77, noting that the price at the time was around $82. $97 was presented as a short-term profit-taking benchmark, being a previous high and the location of the 200-day Exponential Moving Average (EMA). He analyzed that the 20-day and 50-day EMAs are likely to cross in a few days, and the Moving Average Convergence Divergence (MACD) and RSI also indicate sustained momentum.

Solana ecosystem metrics were also presented as bullish evidence. According to the video, the growth rate of Solana perpetual futures (perps) in the first half of 2026 was 8 times faster than Hyperliquid (HYPE). Solana stablecoin supply reached an all-time high in Q2 2026, and Solana-based real-world asset holders approached nearly 500,000. Davis assessed that Solana is showing stronger metrics than other chains, even in the midst of a bear market.

For Ethereum (ETH), the breakthrough of the 20-day Exponential Moving Average was presented as a short-term turning point. Davis believes that if Ethereum breaks above the 20-day EMA in the $1,660-$1,670 range, it could be a long trade opportunity. In the past, on March 10, after breaking the 20-day EMA, it rose from $1,650 to $2,400, and on April 5, it rose from $2,100 to approximately $2,500. However, a breakthrough has not yet been confirmed, and there remains a possibility of rejection below this moving average.

Davis noted an increasing number of rebound candidates across altcoins and tech stocks but warned about the debt risks of some digital asset financial firms. One Avalanche (AVAX) financial firm saw its valuation plummet from $675 million to $29.8 million within six weeks of its Nasdaq debut, and the value of its AVAX holdings, purchased for $265 million, decreased to $123 million. Davis summarized that while the weekly Bitcoin RSI bullish divergence, falling wedge pattern, anticipation of a US cryptocurrency market structure bill, Solana ecosystem growth, and the possibility of Ethereum breaking its 20-day EMA are converging, a cautious approach is needed until an actual breakthrough is confirmed.

[Key Article Summary]

-Bitcoin is testing the possibility of a mid-$70,000 rebound through a weekly Relative Strength Index (RSI) bullish divergence and a falling wedge pattern.

-Solana's perpetual futures growth rate in the first half of 2026 was 8 times faster than Hyperliquid, and $97 was suggested as a short-term target price.

-For Ethereum, whether it breaks the 20-day Exponential Moving Average in the $1,660-$1,670 range was presented as a key variable determining its short-term direction.

*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.*