Bitcoin appears to be starting the week on the right foot, suggesting that the correction that has persisted throughout June is over. Investors continue to ponder Bitcoin’s price trajectory in July, but on-chain data, price history, and strategic trading point to a bullish July. Despite the short-term volatility, many investors remain bullish on Bitcoin’s long-term prospects. In particular, data shows that bids have increased by $500 million compared to the spot price, as noted by popular crypto analyst Daan Crypto Trades, as well as an increase in open interest.
Bitcoin investors bid $500 million below price
Bitcoin traded just above $61,000 for most of the weekend as bulls fought to prevent another decline below $60,000. According to a BTCUSDT chart shared on social media by Daan Crypto Trades over the weekend, many strategic investors have positioned themselves below the price level to jump into Bitcoin when the price is below $50,000.
References
This interesting strategy generated over $500 million in buys over the weekend, spanning a price range from above $60,500 to below $58,500. The bid creates a solid base of buying pressure that prevents the price from falling further. This creates such a strong support level that it is extremely unlikely that we will see a capitulation-style price crash below $60,000 any time soon.
Moreover, Daan Crypto Trades pointed out that Bitcoin open interest has increased correspondingly. The latest data from CoinGlass supports this claim, with open interest increasing by 3.11% across various cryptocurrency exchanges in the last 24 hours. This increase in open interest indicates that new funds are flowing into the market, which suggests bullish and optimistic sentiment among traders.
#Bitcoin Over $500 million worth of bids were placed below price (most were withdrawn) and outstanding commitments increased.
As mentioned, the usual weekend price action is unlikely. Comparatively speaking, there is quite a bit of movement.
The end of a quarter usually brings some interesting movement. https://t.co/4rRSjZMGhz pic.twitter.com/7SJh6EYs7J
— Daan Crypto Trades (@DaanCrypto) June 29, 2024
What to expect in July
Bitcoin price action in June certainly surprised many investors. In particular, digital assets decreased by 9.85% in June from an increase of 11.07% in May. This reflects the high volatility of cryptocurrencies and the rise and fall of Bitcoin over the years. Naturally, this has led traders to take a more cautious strategy on how to approach their Bitcoin positions in the new month.
References
As of this writing, Bitcoin is trading at $63,200 and is up 3% in the last 24 hours. If history repeats itself, Bitcoin will likely rise in July. As cryptocurrency analyst Ali Martinez points out, when Bitcoin has a negative June, it tends to bounce back strongly in July. In fact, June’s negative price action outpaced July’s average return of 7.98% and median return of 9.60%. Similar price action could cause Bitcoin to end the month between $68,000 and $69,500.
Historically, #bitcoin After recording a minus in June, there is a tendency to rebound strongly in July. In fact, $Bitcoin The average return this month was 7.98% and the median return was 9.60%. pic.twitter.com/fJaIwc7Eob
— Ali (@ali_charts) June 30, 2024