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▲ Bitcoin (BTC)
The cryptocurrency market has rebounded from its early July lows. However, if Bitcoin (BTC) fails to reclaim the $67,000-$68,000 range, this rally may only be a bounce within a bear market, not a trend reversal.
According to crypto media outlet FXStreet on July 3 (local time), the total cryptocurrency market capitalization recovered from an early July 1 low of $2.02 trillion to $2.14 trillion. Buying sentiment spread across the market. In the last 24 hours, Uniswap (UNI) rose 13.1%, SushiSwap (SUSHI) 6.8%, and Cardano (ADA) 6.5%. Conversely, Hedera (HBAR) fell 1.9% and IOTA fell 1.7%.
FXStreet reported that the cryptocurrency market is rebounding below its 200-week moving average. Trading below or near this line typically reflects bearish sentiment that lasts for weeks to months. However, given that there haven't been many instances of significant breaks below this curve in the past, the prediction of a return to $1 trillion, the starting point of the 2023 bull market, was deemed overly pessimistic.
Bitcoin briefly surpassed $62,000 on Thursday. However, it retreated to $61,600 amid low trading activity ahead of the US weekend. On a daily basis, the Relative Strength Index (RSI) exited oversold territory and formed a bullish divergence with price. This is interpreted as a sign that selling pressure is weakening and a foundation for a rebound is being built.
However, for a fundamental reversal of the downtrend, Bitcoin needs to firmly establish itself above the $67,000 to $68,000 range. This range includes the local high from June, the 50-day moving average, and the 61.8% Fibonacci retracement level of the May-June decline. FXStreet pointed out that if this range is not breached, the market's recovery attempts could be limited.
On-chain and institutional indicators show both bottoming signals and caution against selling. CryptoQuant stated that the proportion of investors in loss-making positions is increasing. They explained that as the scale of losses approaches record levels, signals of a market bottom are emerging. Matt Hougan, Chief Investment Officer at Bitwise, said, “The collapse in strategy stocks is painful but a necessary process in market cycles, and a sign that Bitcoin is approaching a bottom.” Hougan believes a new Bitcoin bull market could begin this autumn.
Metaplanet announced in its Q2 report that it had purchased an additional 2,823 BTC. Its total holdings increased to 43,000 BTC. Metaplanet has become the third-largest holder among major cryptocurrency-holding companies. According to Arkham Intelligence, brothers Cameron Winklevoss and Tyler Winklevoss moved approximately $67 million worth of Bitcoin and Ethereum (ETH) to the Gemini hot wallet. In the past, similar moves have been followed by sales.
[Article Key Summary]
-The total cryptocurrency market capitalization recovered from an early July 1 low of $2.02 trillion to $2.14 trillion.
-Bitcoin briefly surpassed $62,000 but retreated to $61,600, and a trend reversal can only be confirmed if it surpasses the $67,000-$68,000 range.
-Metaplanet purchased an additional 2,823 BTC in Q2, bringing its total holdings to 43,000 BTC, while the Winklevoss brothers moved approximately $67 million worth of Bitcoin and Ethereum to the Gemini hot wallet.
*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.*
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