Bitcoin (BTC) Rises Despite Extreme Fear... Is a Quick Rebound Coming?

▲ Bitcoin (BTC)

Amidst extreme fear weighing down the cryptocurrency market, Bitcoin (BTC) is on the verge of breaking past $64,000. With $108 million worth of short positions liquidated, experts predicted a quick rebound after a shallow correction.

According to cryptocurrency media outlet Benzinga on July 5 (local time), Bitcoin recorded $63,715.39, up 1.25% over 24 hours. Ethereum (ETH) traded at $1,790.59, up 1.15%, and XRP traded at $1.15, up 0.84%. Dogecoin (DOGE) also recorded $0.07804, up 1.09%.

Bitcoin surged late in the session, nearing the $64,000 mark, and Ethereum broke past $1,800. Ethereum's 24-hour trading volume surged by 41%. During the same period, over $160 million in positions were liquidated in the cryptocurrency market, with short position liquidations alone amounting to $108 million. Bitcoin's open interest increased by 1.21%, and retail investors and whale derivative traders maintained net long positions.

Despite the market rebound, fear did not subside. The Crypto Fear & Greed Index indicated 'extreme fear'. The total cryptocurrency market capitalization increased by 2.39% over 24 hours, reaching $2.13 trillion. The market is awaiting the release of the Federal Reserve's June meeting minutes, and the target range for the federal funds rate remained at 3.5-3.75%.

Cryptocurrency analyst and trader Ali Martinez pointed out that the supply of stablecoins has sharply decreased over the past two months amid large-scale redemptions of USDT and USDC. Martinez stated, "A decrease in stablecoin supply historically reflects a macroeconomic adjustment phase. This is because during broad market corrections, active capital is either redeemed into fiat currency or waits outside the market."

Cryptocurrency analyst Michaël van de Poppe predicted that Bitcoin would rise "quickly" after a "shallow" correction. Van de Poppe assessed that a quick rebound would serve as a catalyst for reclaiming the 200-week moving average, located around $62,500-$62,600, and breaking out of bearish price trends. As the rebound continues amidst extreme fear, the recovery of the 200-week moving average was presented as a key point of observation for the market.

[Article Summary]

-Bitcoin recorded $63,715.39, up 1.25%, nearing a break above $64,000.

-While $108 million worth of short positions were liquidated in the crypto market, sentiment still indicated extreme fear.

-Michaël van de Poppe predicted a quick rebound after a shallow correction and the reclamation of the 200-week moving average at $62,500-$62,600.

*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.*