Bitcoin looks like it’s starting the week on the right foot, suggesting the end of the correction that lasted throughout June. While investors continue to ponder Bitcoin’s price trajectory in July, on-chain data, price history and strategic trading point to a bullish July. Despite short-term volatility, many investors remain sanguine about Bitcoin’s long-term prospects. Interestingly, the data shows an engaging raise in bids of $500 million below the spot price and an raise in open interest, which was pointed out by popular cryptocurrency analyst Daan Crypto Trades.
Bitcoin investors are placing bids worth $500 million below the price
Bitcoin traded just above $61,000 for most of the weekend as bulls fought 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 in order to jump into Bitcoin if it breaks below $50,000.
This thrilling strategy generated over $500 million in bids over the weekend at price points ranging from over $60,500 to under $58,500. The bids create a solid foundation of buying pressure that prevents the price from falling any further. This creates intense support levels, making it highly unlikely that we will see a capitulation-style drop below $60,000 anytime soon.
Additionally, Daan Crypto Trades noted a corresponding raise in interest in open bitcoin. The latest data from CoinGlass supports this claim, showing a 3.11% raise in open interest across various cryptocurrency exchanges over the last 24 hours. This raise in open interest represents novel money entering the market, suggesting bullish, sanguine sentiment among traders.
#Bitcoin More than $500 million in bids were placed below the asking price (but most of these were withdrawn) and open interest increased.
I doubt we’ll get our usual weekend price action as mentioned. Quite a bit of action relatively speaking.
The end of the quarter usually brings about some engaging moves. https://t.co/4rRSjZMGhz photo.twitter.com/7SJh6EYs7J
— Daan Crypto Trades (@DaanCrypto) June 29, 2024
What to expect in July
Bitcoin’s price action in June certainly caught many investors by surprise. In particular, the digital asset fell 9.85% in June, reversing an 11.07% gain in May. This shows the volatile nature of cryptocurrencies and reflects the ups and downs of Bitcoin over the years. Naturally, this has led to traders being more cautious in how they approach their Bitcoin positions in the novel month.
At the time of writing, Bitcoin is trading at $63,200 and is up 3% in the last 24 hours. If history were to repeat itself, Bitcoin would likely see a rally in July. As cryptocurrency analyst Ali Martinez has noted, when Bitcoin has a negative June, it tends to bounce back strongly in July. In fact, negative price action in June preceded a median return of 7.98% and a median return of 9.60% in July. Similar price action could see Bitcoin end the month between $68,000 and $69,500.
Historically when #Bitcoin had a negative June, tends to bounce back strongly in July. In fact, $BTC showed an average return of 7.98% and a median return of 9.60% this month. pic.twitter.com/fJaIwc7Eob
— Ali (@ali_charts) June 30, 2024
