The price of Bitcoin (BTC) continued its downward correction on July 4, falling by 3.34% in the last 24 hours and 5.82% in the past week.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin hit a one-month low of $56,709 after losing crucial support at the $60,000 level.
Meanwhile, the total market capitalization dropped by 4.23% in the last 24 hours, resting at $2.13 trillion. The significant 42% increase in trading volume indicates strong selling pressure in the crypto market.
The drop in Bitcoin below $57,000 on June 4 resulted in a wave of massive liquidations across the crypto market. Coinglass data shows that $98.04 million worth of long Bitcoin positions were liquidated in the last 24 hours, compared to $22.6 million in short liquidations.
Additionally, approximately $333.1 million of leveraged long crypto positions were liquidated versus $50.52 million in short positions.
Despite the bearish trend in the crypto market, analysts remain optimistic about Bitcoin’s potential for recovery to higher levels.
Analyst Jelle noted in a recent post that Bitcoin is bouncing back above the 200-day EMA, which is a positive sign for potential price recovery.
Meanwhile, analyst Skew shared a chart showing that Bitcoin is retesting the 200-day MA for the first time since October 2023, before the approval of spot Bitcoin ETFs.
At the time of writing, the Bitcoin price had risen back above the 200-day EMA, currently at $58,256.
Rekt Capital mentioned that Bitcoin’s current 22% pullback has lasted around 45 days, which is considered above average.
Analyst Yoddha stated that the “local bottom is in” for Bitcoin, while Moustache explained that a retest of the 200-day EMA has historically marked a bottom range over the last 18 months.
In conclusion, despite the recent price drop, analysts believe that Bitcoin has the potential to bounce back and continue its upward trajectory. This article does not offer investment advice, and readers are encouraged to conduct their own research before making any financial decisions.