Bitcoin traders hope bottom is in after BTC price bounces 9% from lows
2024.07.07 10:34
Bitcoin (BTC) circled $57,000 into the July 7 weekly close as markets sprang back from “tremendous downside deviation.”
BTC/USD 1-hour chart. Source: TradingView
Trader sees “positive signs” from BTC price daily closes
Data from Cointelegraph Markets Pro and TradingView showed BTC price action cementing a range roughly 8% above the week’s $53,500 lows.
These had come after the July 5 daily close, and represented the lowest levels for BTC/USD since late February.
Despite “out of hours” weekend trading, however, Bitcoin bulls managed to recover some lost ground, leaving the lows as an outlier at the time of writing.
“Tremendous deviation to the downside in recent days,” popular trader and analyst Rekt Capital summarized in one of his latest analysis posts on X (formerly Twitter).
“But now that Bitcoin has most recently Daily Closed above the $56750 to protect this level as support… Bitcoin is showing positive signs to continuing the clustering around the Range Low area.”
BTC/USD chart. Source: Rekt Capital/X
BTC/USD ultimately just missed out on a pivotal price point at its most recent daily close, which came in at $58,250 versus the desired $58,450 — an achievement that Rekt Capital argued “would fuel upside to ~$60600.”
BTC/USD chart. Source: Rekt Capital/X
The latest live data from monitoring resource CoinGlass showed $58,018 as the level attracting the most liquidity to the upside at the time of writing, with price eating into bid support below $57,000.
BTC liquidation heatmap (screenshot). Source: CoinGlass
BTC long liquidations from July 4 to 5 totaled more than $220 million, with the cross-crypto total at $750 million.
Crypto liquidation (screenshot). Source: CoinGlass
Shorts then followed over the weekend, with popular trader Daan Crypto Trades noting some short positions closing out on the way to local highs of $58,500.
Source: Daan Crypto Trades
Bitcoin RSI fuels optimism
Others eyed encouraging signals among Bitcoin’s relative strength index (RSI) readings on daily timeframes, including a bullish divergence.
Related: Bitcoin sales by gov’ts just 4% of $225B bull market inflows — Analyst
“I initially targeted 52k, but it seems the bulls might have front-run me,” social media analyst Wolf told X followers on July 6.
“There’s a notable bullish divergence on the daily RSI, and the broadening wedge pattern adds further interest.”
BTC/USD chart with RSI data. Source: Wolf/X
Trader, analyst and podcast host Scott Melker, known as the “Wolf of All Streets,” even suggested that the strength of the latest daily close could have implications for a longer-term BTC price floor.
“This is exactly what we are looking for. If we get a strong close today, then odds are the bottom of this correction is in,” part of his latest X post read.
“If we close with a clear elbow up on RSI we are looking great. And RSI oversold again.”
BTC/USD 1-day chart with RSI data. Source: TradingView
Daily RSI stood at 32.7 at the time of writing, plumbing its most “oversold” zone since August 2023.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
