The Bitcoin (BTC) price continued its downward trend on July 4, falling 3.34% in the last 24 hours and 5.82% over the past week.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin fell to a one-month low of $56,709 after losing key support provided by the psychological level of $60,000.
Meanwhile, the total market cap has fallen by 4.23% over the past 24 hours, standing at $2.13 trillion at the time of publication. The 42% increase in total trading volume is a testament to the sell-side strength in the cryptocurrency market.
On June 4, Bitcoin fell below $57,000, causing massive liquidations across cryptocurrency markets.
According to data from Coinglass, $98.04 million worth of long Bitcoin positions were liquidated in the last 24 hours, while $22.6 million worth of short positions were liquidated.
Around $333.1 million worth of leveraged long cryptocurrency positions were liquidated in 24 hours, while short positions amounted to $50.52 million.
Despite the declines across the cryptocurrency sector, led by Bitcoin, analysts remain optimistic about the potential for BTC to recover to higher levels.
“Bitcoin has bounced again and is back above the 200-day EMA,” Bitcoin analyst Zell wrote on X on June 4.
The analysts’ sentiment appears to have been influenced by the fact that Bitcoin “surged below its 200-day exponential moving average (EMA)” in early Asian trading on June 4, as previously reported by Cointelegraph.
The trader explained that if Bitcoin price were to create a daily candlestick close above this level, it would “successfully sweep the lower range,” after which it would retest the 200-day EMA and potentially see a bullish divergence on the daily RSI.
Fellow analyst Skew shared the following chart on July 4: Bitcoin price is retesting the “200D MA” for the first time since October 2023, before a spot Bitcoin ETF was approved.
According to the analyst, the recent decline seen in the pioneering cryptocurrency’s price was triggered by a “trend rejection and reversal” around $64,000.
“So for this HTF MA to actually act as a systematic trigger in the market, it needs to confirm market demand and reversal signals.”
At the time of publication of this article, the Bitcoin price has risen again above the 200-day exponential moving average and is currently at $58,256.
Rekt Capital said Bitcoin’s current 22% decline lasted about 45 days and was an “above-average decline.”
Meanwhile, pseudonymous analyst Yoda simply said that the price of the flagship cryptocurrency has “hit its domestic floor.”
Mustache shared similar sentiments, explaining that retests of the 200-day EMA over the past 18 months have “always shown a bottom range.”
“I’m feeling the bottom here for $BTC.”
Related: Bitcoin Could Crash to $50K, Researcher Warns 10x
In another post, the analyst shared the following chart, explaining that the current correction is simply a healthy pullback after completing the Wyckoff-style reaccumulation pattern, allowing BTC to make a major breakout in the uptrend.
“It looks like we are now experiencing a true ‘spring’ event in the Wyckoff-Reaccumulation Model.”
Daan Crypto Trades has confirmed a long position of over $200 million, and the position was taken as Bitcoin rose back above the 200-day SMA.
“You better hope this level holds, otherwise the position will be wiped out again. Plus, a huge $30 million short position on Bybit is under pressure.”
According to CoinGlass data, 12-hour bid liquidity is at $57,615, just below the spot price, with buy orders reaching around $24.61 million.
This area could provide the demand pressure needed to break Bitcoin out of its long-term downtrend.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.