Bitcoin looks like it’s starting to kick off the week on the right foot, suggesting the end of the correction that lingered throughout June. While investors continue to ponder on Bitcoin’s price trajectory in July, on-chain data, price history, and strategic transactions point to a bullish July. Despite the short-term volatility, many investors remain bullish on Bitcoin’s long-term prospects. Notably, data shows an interesting $500 million increase in bids below the spot price and a rise in open interest, as pointed out by popular crypto analyst Daan Crypto Trades.
Bitcoin Investors Place $500 Million Bids Below Price
Bitcoin traded for the majority of the weekend just above $61,000 as the bulls fought to prevent 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 on Bitcoin in case of a break below $50,000.
This exciting strategy amounted to over $500 million in buy prices over the weekend across price points stretching from above $60,500 to below $58,500. The bids create a solid foundation of buying pressure that prevents the price from falling much further. This creates intense support levels, making it extremely unlikely we’ll see a capitulation-style price collapse below $60,000 anytime soon.
Furthermore, Daan Crypto Trades pointed out a corresponding increase in the Bitcoin open interest. The latest data from CoinGlass supports this claim, with a 3.11% increase in open interest across various crypto exchanges in the past 24 hours. This increase in open interest represents new money coming into the market, which suggests a bullish, optimistic sentiment among traders.
#Bitcoin $500M+ in bids were placed below price (but mostly pulled) and open interest going up.
Doubt we’ll get our usual weekend price action as mentioned. Quite a lot of action relatively speaking.
End of the quarter usually causes 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 definitely surprised many investors. Particularly, the digital asset declined by 9.85% in June to reverse an 11.07% increase 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 by traders on how they approach their Bitcoin positions in the new month.
At the time of writing, Bitcoin is trading at $63,200 and is up by 3% in the past 24 hours. If history were to repeat itself, Bitcoin would likely see a rise 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 actions in June have preceded an average return of 7.98% and a median return of 9.60% in July. A similar price action could see Bitcoin end the month between $68,000 and $69,500.
Historically, when #Bitcoin has had a negative June, it tends to bounce back strongly in July. In fact, $BTC has shown an average return of 7.98% and a median return of 9.60% during this month. pic.twitter.com/fJaIwc7Eob
— Ali (@ali_charts) June 30, 2024
