Bitcoin (BTC) Shorts Worth $450 Million Evaporate...Charging Towards $65,000

▲ Bitcoin (BTC)/AI Generated Image

According to cryptocurrency market platform CoinMarketCap on July 6 (local time), Bitcoin recorded $63,450.93, rising 1.14% over 24 hours. The 24-hour low was $62,413.99, and the high was $63,935.85. Over the past week, its correlation with gold also reached 86.4%, showing a trend of reacting to macroeconomic variables.

The spark for the rebound was US employment figures. New US employment in June amounted to only 57,000, showing a weaker-than-expected performance, which lowered market expectations for a short-term interest rate hike by the Federal Reserve. Bitcoin rebounded from around $58,293 on July 1, then broke past $62,000. In this process, short positions totaling over $450 million were liquidated, with forced buying amplifying the price increase.

Institutional capital flows also supported investor sentiment. Bitcoin spot ETFs ended six consecutive trading days of outflows, recording a net inflow of $224 million on July 4. While it's difficult to conclude that the previous outflow trend has ended based on a single day's net inflow, it was presented as a signal that institutional investors' interest in buying at lower prices has not completely disappeared.

Technically, defending the 200-week moving average around $62,600 is key. If Bitcoin maintains this price level, it could challenge the resistance of the 50-month exponential moving average near $65,000. A breakout above $65,000 with accompanying trading volume could strengthen the recovery trend, but a drop below $62,600 would break the short-term bullish structure, suggesting a retest of the $60,000 support level.

The market is watching the next US Consumer Price Index and the Federal Open Market Committee meeting on July 29. For the technical rebound created by the short squeeze to translate into a sustained uptrend, continued net inflows into Bitcoin spot ETFs and a recovery in trading volume are necessary. The $62,600 support and $65,000 resistance are key zones that will determine the short-term price direction.

[Article Key Summary]

-Bitcoin recorded $63,450.93, rising 1.14% over 24 hours, and showed an 86.4% correlation with gold over the past week.

-As new US employment in June amounted to only 57,000, the liquidation of over $450 million in short positions fueled the rebound.

-Whether $62,600 holds as support and a breakout above $65,000 are presented as key variables that will determine the 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.*