Bitcoin (BTC) and Ethereum (ETH) Break Through Fear Market...Whales Begin Accumulation

▲ Bitcoin (BTC), Ethereum (ETH)/AI Generated Image

Bitcoin (BTC) and Ethereum (ETH) have rebounded from their yearly low shock, clearly marking a short-term turning point in the cryptocurrency market where extreme fear and spot ETF inflows clash.

According to Cointelegraph, a cryptocurrency specialized media outlet, on July 4 (local time), Bitcoin rose to just under $63,000 on July 3. Ethereum showed a stronger trend than the overall market, rising to $1,775. This rebound came just days after Bitcoin fell to a 21-month low and Ethereum recorded its yearly low.

Market sentiment remains chilled. The Crypto Fear & Greed Index scored 11 out of 100, remaining in the extreme fear zone. However, on July 2, US Bitcoin spot ETFs saw a net inflow of $221.7 million. This was the largest single-day net inflow since early May and broke a streak of 10 consecutive trading days of net outflows.

In the futures market, both rebound signals and caution signals were simultaneously detected. Funding paid by investors betting on price increases to those betting on declines has remained positive for the past 8 consecutive days, and the uptrend continued during the same period. The total value of Bitcoin leveraged positions also approached high levels in recent days. The accumulation of leverage without a clear price advance is seen more as a warning sign than a confirmation of a rally.

The short-term watch lines are $61,000 and $62,500. The media highlighted key variables: whether Bitcoin maintains above $61,000, where large leveraged long positions are concentrated, and whether the ETF net inflow on July 2 ends up being a one-day event. Conversely, if it crosses $62,500 again, leveraged short positions will approach a price level where they face pressure.

The overall market is closer to a mixed phase than a clear bull market. Spot buying and ETF fund recovery suggest the possibility of investor sentiment improving faster than fear indicators. However, with extreme fear remaining and upward leveraged bets increasing, the thin trading environment over the US holiday weekend remains a burden for increased volatility.

[Article Key Summary]

-Bitcoin and Ethereum have rebounded to around $63,000 and $1,775 respectively after recent low-point shocks.

-US Bitcoin spot ETFs saw a net inflow of $221.7 million, breaking a streak of 10 consecutive trading days of net outflows.

-The defense of $61,000 and the re-breakout of $62,500 have been presented as key turning points for Bitcoin's 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.*