It looks like bitcoin is starting the week on the right foot, suggesting the end of the correction that lasted throughout June. As investors continue to reflect on bitcoin’s price trajectory in July, on-chain data, price history, and strategic transactions all 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 surge in open interest, as noted by popular crypto analyst Daan crypto Trades.
bitcoin Investors Bid $500 Million Below Price
bitcoin traded for most of the weekend just above $61,000 as bulls struggled to avoid 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 into bitcoin in the event of a break below $50,000.
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This exciting strategy amounted to over $500 million in bid prices over the weekend at price points ranging from over $60,500 to under $58,500. The bids create a solid base of 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 corresponding increase in bitcoin open interest. The latest data from CoinGlass supports this claim, with a 3.11% increase in open interest across various cryptocurrency exchanges over the past 24 hours. This increase in open interest represents new money entering the market, suggesting bullish and optimistic sentiment among traders.
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twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin Over $500 million worth of bids were placed below the price (but mostly withdrawn) and open interest increased.
I doubt we will get our usual weekend price action as mentioned. Lots of action relatively speaking.
The end of the quarter usually brings about some interesting moves. https://t.co/4rRSjZMGhz pic.twitter.com/7SJh6EYs7J
– Daan crypto Trades (@DaanCrypto) twitter.com/DaanCrypto/status/1807050161098461205?ref_src=twsrc%5Etfw” rel=”nofollow”>June 29, 2024
What to expect in July
The evolution of the price of bitcoin in June definitely surprised many investors. Notably, the digital asset fell 9.85% in June to reverse an 11.07% rise in May. This shows the volatile nature of cryptocurrencies and reflects the ups and downs of bitcoin over the years. Naturally, this has led traders to adopt more cautious strategies for how they approach 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% over the past 24 hours. If history were to repeat itself, bitcoin would likely see a surge in July. As noted by crypto analyst Ali Martinez, when bitcoin had a negative June, it tends to bounce back strongly in July. In fact, negative price actions in June preceded an average 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.
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Historically, when twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin
—Ali (@ali_charts) twitter.com/ali_charts/status/1807326177910043012?ref_src=twsrc%5Etfw” rel=”nofollow”>June 30, 2024
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