Bitcoin (BTC) completed its journey to $57,000 by the end of the week on July 7, rebounding strongly from a significant downturn in the market.
A trader, analyzing the BTC/USD 1-hour chart, identified optimistic signals in the daily closing prices of Bitcoin. Data from Cointelegraph Markets Pro and TradingView revealed that Bitcoin’s price had stabilized around 8% above the week’s lows of $53,500, which were recorded after the daily close on July 5, marking the lowest levels for BTC/USD since late February.
Despite volatile weekend trading activities, Bitcoin bulls managed to claw back some of the lost ground, making the previous lows appear as an anomaly at the time of reporting. Renowned trader and analyst Rekt Capital succinctly captured the recent market action as “a significant downturn in recent days” in one of his recent analysis posts on X.
BTC/USD narrowly missed a crucial price level at the latest daily close, settling at $58,250 instead of the desired $58,450. Rekt Capital suggested that achieving this target would likely propel the price to around $60,600.
The current market data from CoinGlass indicated that $58,018 was a crucial price point with a significant amount of liquidity attracting buyers at the time of writing, with the price slowly eroding the bid support below $57,000.
Bitcoin experienced long liquidations amounting to over $220 million between July 4 and 5, contributing to a total cross-crypto liquidation value of $750 million. Subsequently, shorts increased over the weekend, with well-known trader Daan Crypto Trades observing closure of some short positions as the price peaked at around $58,500.
Traders were monitoring Bitcoin’s relative strength index (RSI) readings for positive signals, including a bullish divergence on daily timeframes. Social media analyst Wolf noted the unexpected bullish momentum that led to a higher jump from the initial target of $52,000.
Renowned trader, analyst, and podcast host Scott Melker, also known as the “Wolf of All Streets,” emphasized the importance of the latest daily close, hinting at potential implications for establishing a longer-term price floor for BTC. The article ended with a reminder that it does not offer investment advice or recommendations as all trading decisions involve risks, and readers should conduct their own due diligence before making any investment choices.