Bitcoin (BTC) Reaches Two-Week High, But Is Another 'Terrible Monday' Coming?

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) surged to $63,450, its highest level in approximately two weeks, but warning signs are flashing ahead of Monday. With bearish trends repeating on the last seven Mondays, the question of whether the $62,600 support level will hold has emerged as the first test after the weekly close.

According to crypto media outlet Cointelegraph on July 5 (local time), Bitcoin moved near its two-week high ahead of the weekly close. It rose to $63,450 last Saturday amidst thinning exchange order books and a three-day holiday in the United States.

Market analyst Exitpump stated, “Stronger passive selling pressure above the price is suppressing the upward trend.” Crypto trader Daan Crypto Trades analyzed that short position liquidations continued during the price increase. CoinGlass data showed that 24-hour crypto liquidations totaled $167 million.

Daan Crypto Trades said, “It's a typical short squeeze. As the price slowly rises to a level where everyone is short, forced position covering creates the rest of the upside.” He added, “Now the key is whether the weekly 200-week moving average at $62,600 will hold as support, or if it will drop again after merely clearing liquidity.”

Crypto trader Killa warned of the bearish trend on the last seven Mondays. He said, “The last seven Mondays have all been terrible for Bitcoin,” asking, “Will the exact same pattern repeat next week?”

QCP Capital assessed that recovery signals are appearing in the cryptocurrency market. US Bitcoin spot ETFs ended six consecutive trading days of net outflows, recording a net inflow of $224 million on Thursday, after approximately $2.4 billion had previously exited. With the CME Group FedWatch tool showing an approximately 80% probability of the US Federal Reserve freezing interest rates on July 29, QCP Capital analyzed that favorable Consumer Price Index (CPI) data is needed for dovish interest rate expectations to become widespread.

[Article Summary]

-Bitcoin reached its highest level in approximately two weeks, rising to $63,450 over the weekend.

-Daan Crypto Trades identified the holding of the 200-week moving average at $62,600 as a key variable.

-Amidst bearish Bitcoin trends on the last seven Mondays, US Bitcoin spot ETFs ended six consecutive trading days of net outflows and recorded a net inflow of $224 million.

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