Bitcoin rose back to $65,000 after Wall Street opened on July 25 as U.S. stocks recovered from their worst day since 2022.
Bitcoin turns bullish after algorithm-driven selloff
Bitcoin (BTC) price has rebounded after initial selling pressure, according to data from Cointelegraph Markets Pro and TradingView.
Popular Trader Skew says this is a form of trading algorithm, highlighting one entity in particular called an “aggressive seller.”
“This morning is a great example of a fluid game,” he explained in the latest X update.
“Aggressive sellers have driven the price down before a large passive buyer comes in. The price momentum is basically covering positions until the close, after which the market is net long. So there will probably be another reversal later.”
Skew et al. have tracked the slow, sustained comeback of U.S. stocks after previously suffering huge losses. The Nasdaq 100 fell 3.6% on July 24, its worst day since November 2022, while the S&P 500 fell 2%.
Bitcoin showed similar moves across the board, hitting a low of $63,424 on Bitstamp.
“Has the bubble just burst?” trading resource Kobeissi Letter asked in part of X’s commentary that day.
Market volatility increased following the release of US macroeconomic data.
The personal consumption expenditures (PCE) index came in lower than expected, which could provide potential relief to risky assets as lower spending increases the likelihood of interest rate cuts.
However, new and active claims for unemployment benefits were also lower than expected, indicating the labor market is resilient and reducing market speculation that the Federal Reserve will take further action to cut rates at its next meeting on July 31.
The latest data from CME Group’s FedWatch tool confirms that the odds of the Fed making an unexpected move are already very low.
Traders set key targets for BTC price daily close
Meanwhile, popular trader and analyst Rekt Capital highlighted the importance of the current battle to flip $65,000 as support.
Related: Bitcoin Expected to ‘Rise’ as First Buy Signal in a Year
As Cointelegraph reports, this level represents the price realized by short-term Bitcoin holders.
“Bitcoin is currently in the process of retesting the $65,000 level in a volatile manner,” he told his X followers along with an explanatory chart.
“For the retest to be successful, the daily close must now be above $65,000 (blue) and prices must remain in the $65,000-$71,500 area (red).”
Previously, Rekt Capital estimated that it could only take about two months for BTC/USD to reach new highs.
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.