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▲ Bitcoin (BTC)
The cryptocurrency market rebounded from its early July lows. However, if Bitcoin (Bitcoin, BTC) fails to reclaim the $67,000-$68,000 range, this rally may only be a bounce within a bear market, not a trend reversal.
According to crypto media outlet FXStreet on July 3 (local time), the total cryptocurrency market capitalization recovered from a low of $2.02 trillion on July 1 to $2.14 trillion. Buying momentum spread across the market. In the last 24 hours, Uniswap (Uniswap, UNI) rose 13.1%, SushiSwap (SushiSwap, SUSHI) rose 6.8%, and Cardano (Cardano, ADA) rose 6.5%. In contrast, Hedera (Hedera, HBAR) fell 1.9% and IOTA fell 1.7%.
FXStreet reported that the cryptocurrency market is bouncing below the 200-week moving average. Trading below or near this line typically reflects bearish sentiment that lasts for weeks to months. However, given that there have not been many instances of significant deviations below this curve in the past, the prediction of a return to $1 trillion, the starting point of the 2023 bull market, was deemed overly pessimistic.
Bitcoin briefly surpassed $62,000 on Thursday but retreated to $61,600 amid low trading activity ahead of the US weekend. The daily Relative Strength Index (RSI) moved out of oversold territory and formed a bullish divergence with the price. This is interpreted as a sign that selling pressure is weakening and a basis for a rebound is being established.
However, for a fundamental reversal of the downtrend, Bitcoin needs to settle above the $67,000-$68,000 range. This zone coincides with the June local high, the 50-day moving average, and the 61.8% Fibonacci retracement of the May-June decline. FXStreet pointed out that if this zone is not broken, the market's recovery attempts could be limited.
On-chain and institutional indicators simultaneously show bottoming signals and caution regarding selling. CryptoQuant stated that the proportion of investors in loss-making positions is increasing. It explained that as the scale of losses approaches record levels, signals of a bottom approaching are emerging. Matt Hougan, Chief Investment Officer at Bitwise, said, “The collapse in Strategy stock is painful but a necessary process in the market cycle, and a sign that Bitcoin is approaching a bottom.” Hougan believes a new Bitcoin bull market could begin this fall.
Metaplanet announced in its Q2 report that it had purchased an additional 2,823 BTC, bringing its total holdings to 43,000 BTC. Metaplanet has become the third-largest holder among major cryptocurrency-holding companies. According to Arkham Intelligence, brothers Cameron Winklevoss and Tyler Winklevoss moved approximately $67 million worth of Bitcoin and Ethereum (Ethereum, ETH) to the Gemini hot wallet. In the past, similar movements have been followed by sales.
[Article Key Summary]
-The total cryptocurrency market capitalization recovered from a low of $2.02 trillion on July 1 to $2.14 trillion.
-Bitcoin briefly surpassed $62,000 but fell back to $61,600, and a trend reversal can only be confirmed by breaking above the $67,000-$68,000 range.
-Metaplanet purchased an additional 2,823 BTC in Q2, bringing its total holdings to 43,000 BTC, and the Winklevoss brothers moved approximately $67 million worth of Bitcoin and Ethereum to the Gemini hot wallet.
*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.*
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