It looks like Bitcoin is starting the week on a strong note, signaling the end of the correction that lasted throughout June. As investors continue to ponder Bitcoin’s price trajectory in July, on-chain data, price history, and strategic trades 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 increase of $500 million in bids below the spot price and an increase in open interest, as pointed out by popular crypto analyst Daan Crypto Trades.
Bitcoin investors place a bid $500 million under the price
Bitcoin traded just above $61,000 for most of the weekend as bulls fought to avoid another drop below $60,000. According to a BTCUSDT chart shared on social media this weekend by Daan Crypto Trades, many strategic investors have positioned themselves below the price level to jump on Bitcoin in the event of a break below $50,000.
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This exciting strategy delivered over $500 million in buys this weekend, spanning price points ranging from above $60,500 to below $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 drop below $60,000 anytime soon.
Additionally, Daan Crypto Trades pointed to a corresponding increase in Bitcoin open interest. The latest data from CoinGlass supports this claim, with a 3.11% increase in open interest across several crypto exchanges in the last 24 hours. This increase in open interest represents new money entering the market, indicating bullish, optimistic sentiment among traders.
#Bitcoin More than $500 million in underprice bids were placed (but mostly withdrawn) and open interest soared.
I doubt we’ll get our usual weekend price promotion as mentioned. Quite a bit of action, relatively speaking.
The end of the quarter usually brings some interesting moves. https://t.co/4rRSjZMGhz pic.twitter.com/7SJh6EYs7J
— Daan Crypto Trades (@DaanCrypto) June 29, 2024
What to expect in July
Bitcoin’s price action in June certainly took many investors by surprise. Digital assets in particular fell 9.85% in June, reversing an 11.07% gain in May. This shows the volatile nature of cryptocurrencies and reflects Bitcoin’s ups and downs over the years. Naturally, this has led to more cautious strategies from traders on 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% in the last 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 has had a negative June, it tends to bounce back strongly in July. In fact, negative price action in June preceded an average return of 7.98% and an average return of 9.60% in July. Similar price action could see Bitcoin end the month between $68,000 and $69,500.
Historically, when #Bitcoin has had a negative June, but tends to rebound strongly in July. In fact, $BTC has shown an average return of 7.98% and an average return of 9.60% this month. pic.twitter.com/fJaIwc7Eob
— Ali (@ali_charts) June 30, 2024