Bitcoin appears to have started the week on the right foot, signaling the end of the correction that lasted throughout June. As investors continue to ponder Bitcoin’s price trajectory in July, on-chain data, price history, and strategic trading point to a bullish July. Despite the short-term volatility, many investors remain optimistic about Bitcoin’s long-term prospects. Notably, the data shows an interesting $500 million increase in bids below the spot price and a rise in open interest, as noted by popular crypto analyst Daan Crypto Trades.
Bitcoin Investors Place $500 Million Bid Below Price
Bitcoin traded for most of the weekend just above $61,000, as bulls struggled to prevent another drop below $60,000. According to a BTCUSDT chart shared on social media over the weekend by Daan Crypto Trades, many strategic investors have positioned themselves below the price level to jump on Bitcoin in the event of a breakout below $50,000.
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This exciting strategy saw over $500 million in buying over the weekend across price points from above $60,500 to below $58,500. The bidding creates a strong basis for buying pressure that prevents the price from falling much further. This creates intense support levels, making it extremely unlikely that we will see a capitulation-style price breakdown below $60,000 anytime soon.
Furthermore, Daan Crypto Trades noted a similar increase in open interest in Bitcoin. The latest data from CoinGlass supports this claim, with a 3.11% increase in open interest across various cryptocurrency exchanges in the past 24 hours. This increase in open interest represents new money entering the market, indicating an optimistic bullish sentiment among traders.
#Bitcoin More than $500 million in bids were placed below the price (but most were withdrawn) and open interest soared.
I doubt we will get the usual price action over the weekend as mentioned. Relatively a lot of work.
The end of the quarter usually brings some interesting moves. https://t.co/4rRSjZMGhz pic.twitter.com/7SJh6EYs7J
— Daan Crypto Trades (@DaanCrypto) June 29, 2024
What to expect in July
Bitcoin’s price action in June certainly surprised many investors. In particular, the digital asset fell 9.85% in June to reflect an 11.07% increase in May. This demonstrates the volatile nature of cryptocurrencies and reflects the rise and fall of Bitcoin over the years. Naturally, this has led to more cautious strategies by traders on how to handle their Bitcoin positions in the new month.
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At the time of writing, Bitcoin is trading at $63,200 and is up 3% in the past 24 hours. If history repeats itself, Bitcoin will likely see a rally in July. As cryptocurrency analyst Ali Martinez pointed out, when Bitcoin performed negatively in June, it tends to rebound strongly in July. In fact, negative price movements in June were preceded by an average return of 7.98% and an average return of 9.60% in July. A similar price action could see Bitcoin end the month between $68,000 and $69,500.
Historically when #Bitcoin June was negative, but it tends to rebound strongly in July. In fact, $ Bitcoin It showed an average return of 7.98% and an average return of 9.60% during this month. pic.twitter.com/fJaIwc7Eob
— Ali (@ali_charts) June 30, 2024
