Bitcoin (BTC) · Ethereum (ETH) Broke Through the Fear Market... Whales Begin Accumulation

▲ Bitcoin (BTC), Ethereum (ETH)/AI Generated Image

Bitcoin (BTC) and Ethereum (ETH) have rebounded from the impact of their yearly lows, clearly defining a short-term turning point in the cryptocurrency market where extreme fear and spot ETF fund inflows are clashing.

According to cryptocurrency media outlet Cointelegraph on July 4 (local time), Bitcoin rose to just under $63,000 on July 3. Ethereum showed a stronger trend than the overall market, climbing to $1,775. This rebound comes just days after Bitcoin fell to a 21-month low and Ethereum recorded its lowest point of the year.

Market sentiment remains cold. The Crypto Fear & Greed Index recorded 11 out of 100 points, staying in the extreme fear zone. However, on July 2, US Bitcoin spot ETFs saw a net inflow of $221.7 million. This is the largest single-day net inflow since early May and breaks a streak of 10 consecutive trading days of net outflows.

In the futures market, both rebound signals and caution signals were simultaneously detected. Funding, paid by investors betting on price increases to those betting on declines, has remained positive for the past 8 consecutive days, and the upward trend continued during the same period. The total value of Bitcoin leveraged positions also approached high levels in recent days. The assessment is that the accumulation of leverage without clear price advancement is closer to a warning sign than a confirmation of a rally.

The short-term watch levels are $61,000 and $62,500. The media pointed to whether Bitcoin maintains above $61,000, where large leveraged long positions are concentrated, and whether the ETF net inflow on July 2 ends up as a one-day event, as key variables. Conversely, if it crosses $62,500 again, leveraged short positions will approach price levels where they face pressure.

The overall market is closer to a mixed phase than a clear bull market. Spot buying and the recovery of ETF funds indicate the possibility that investor sentiment may improve faster than fear indicators. However, with extreme fear remaining and upward leveraged bets increasing, the thin trading environment during the US holiday weekend remains a burden for increased volatility.

[Article Key Summary]

-Bitcoin and Ethereum have rebounded to around $63,000 and $1,775, respectively, after recent low-point shocks.

-US Bitcoin spot ETFs saw a net inflow of $221.7 million, breaking a 10-day consecutive net outflow streak.

-Defense of $61,000 and re-breakout above $62,500 are presented as key turning points for Bitcoin's 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.*