Bitcoin (BTC) rebound, still hard to believe?...A test to escape the bearish trend

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) has rebounded from the recent sharp decline, but an analysis suggests that the bearish structure will not end if it fails to overcome the $64,000-$66,500 barrier. Further recovery towards $72,000-$74,000 also depends on breaking through key resistance levels.

According to crypto media outlet Cryptopotato on July 7 (local time), Bitcoin continues to maintain a clear downtrend on the daily chart. It remains below the 100-day and 200-day moving averages, and both moving averages continue to decline.

The recovery that began in the $58,000-$61,000 demand zone has stabilized the price movement. The Relative Strength Index (RSI) formed a bullish divergence by setting higher lows despite the bearish trend in June. The media analyzed this as a sign that downward momentum is weakening and buying power is gradually recovering.

However, until the $64,000-$66,500 supply zone is recovered, the market structure is considered bearish. This zone, where a previous support level turned into resistance, was identified as the biggest barrier preventing further recovery. If this zone is breached, the next major resistance level is $72,000-$74,000.

On the 4-hour chart, the short-term trend has improved compared to the daily chart. Bitcoin built a base in the $58,000-$59,000 demand zone and then strongly rebounded to the downtrend line that has continued since mid-June. An analysis suggests that the short-term recovery structure will be maintained as long as the $60,000-$61,000 support level holds.

The 48-hour liquidation heatmap showed liquidity concentrated between $64,000 and $66,000. The largest volume of liquidations was clustered around $65,000-$66,000. Both the technical structure and liquidation data pointed to the upper liquidity zone as a key short-term price level.

[Article Key Summary]

-An analysis suggests that Bitcoin will maintain a bearish market structure until it recovers $64,000-$66,500.

-The bullish divergence of the Relative Strength Index (RSI) indicated that downward momentum is weakening.

-The largest volume of liquidations is concentrated at $65,000-$66,000, identifying it as a key short-term price level.

*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.*