Bitcoin Bulls Maintain Stance Amidst Market Fluctuations: Signs Point to Recovery Towards $60K

BTC derivatives continue to exhibit moderate bullish sentiment, fostering optimism for a swift reclaim of $60,000. 

Source: www.aydinlik.com.tr

Despite a 7% drop on July 8 with a retest of the $53,354 level, which inflicted minor damage on bullish positions, approximately $62 million in leveraged longs were liquidated. However, a rapid 7% rally ensued, propelling Bitcoin to $58,215 within 8 hours, catching bears by surprise and resulting in the forced closure of $96 million in short positions.

Bitcoin's Temporary Intraday Pullback Caught Short Sellers By Surprise

On July 8, Bitcoin returned precisely to the $57,200 level it had seen 24 hours earlier. The liquidation data indicates that entities betting on a price decline, which contributed to a $355 million increase in open interest on July 7, likely used high leverage, potentially exceeding 20X. However, the subsequent price increase on July 8 completely erased these gains in open interest. This data underscores why BTC derivatives are showing moderate bullishness, hinting at a potential move to reclaim $60,000 soon.

Analysts in the cryptocurrency space point to the transfer of 16,308 BTC by the German government to market makers and exchanges in the last 24 hours as a significant factor dampening Bitcoin traders' appetite. Nevertheless, this event also offers a silver lining for bulls, as half of the seized coins have already been sold, suggesting a decline in selling pressure. Trader and influencer, Bitcoin investors are likely to hold off on adding positions until the German government completes its sales. Additionally, potential market impact could arise from the Mt. Gox bankruptcy estate distributing coins after a decade.

Conversely, notes that the failed FTX exchange's distribution of cash to affected investors post-bankruptcy may spur cryptocurrency purchases. Looking ahead, the analysis shifts to longer-term considerations, including the U.S. central bank's shift towards expansionary monetary policies and the outcomes of the U.S. Presidential election. Furthermore, despite achieving new all-time highs on July 8, the stock market rally supported by tech companies holding a record $4.11 trillion in cash and equivalents is somewhat overlooked by analysts.

The S&P 500's buoyancy, bolstered by tech companies' robust margins and offering dividends, remains an attractive investment even amid economic slowdowns. Moreover, fewer job market competitors benefit companies, enabling them to expand operations at lower costs. In summary, while economic indicators suggest a mixed outlook, the interplay of geopolitical events and market dynamics continues to shape investor sentiment and asset performance. However, it is uncertain whether the $55,000 support level will hold due to the FUD surrounding miners' sell pressure and the potential negative impact on Bitcoin if an economic recession is confirmed.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.