Bitcoin Recoups to $62,000 Amid Market Recovery and Liquidation Concerns
Summary:
Bitcoin (BTC) bounced back to $62,000 on June 25 as markets slowly recovered from weekly losses. Data showed BTC price strength making a tentative recovery after Wall Street open, after suffering the previous day by dropping to seven-week lows of $58,500, sparking market capitulations. BTC long liquidations for June 24 were just under $150 million as per data from CoinGlass. Meanwhile, discussions of the influence of Mt. Gox bankruptcy continued and trading firm QCP Capital expressed expectations of continued selling pressure.
On June 25, Bitcoin (BTC) managed to regain its footing at $62,000 as the markets made gradual steps to recover from the losses experienced at the beginning of the week. After Wall Street's trading session commenced, apparent signs of resilience in BTC price sparked a cautious comeback. A prior nose-dive to a seven-week low of $58,500 led to a series of market capitulations. BTC witnessed its lowest 4-hour Relative Strength Index (RSI) reading since August 2023, a period that also saw it relinquishing support lines such as the aggregate cost basis of short-term holders. "The market range held steadfastly as needed," popular trader Daan Crypto Trades expressed in a recent update on X (previously Twitter). "Bitcoin witnessed the largest net selling day in over a year yesterday, with RSI levels also dipping to levels not seen in a year." CoinGlass data revealed that the total BTC long liquidations for June 24 were just below $150 million. "There's considerable liquidity at $65K and upwards," Daan Crypto Trades projected. "It might be a viable short-term target, and the market response can be evaluated on reaching this level. If it drops below the range base of ~59K, that's a bad sign." Talk keeps going around on the potential effects of the Mt. Gox bankruptcy proceedings, psychological or otherwise. "Expect continued sales pressure as markets grapple with the repercussions of 140,000 BTC," QCP Capital opined on the matter with its latest note to Telegram subscribers. "Long-standing Mt. Gox creditors likely don't have hedges considering the prohibitive expense inherent in maintaining perp and option positions over extended periods." QCP remarked that the BTC price counterbalanced near its 200-day exponential moving average (EMA), which at the moment is almost exactly $58,000. The last instance BTC/USD traded under this trendline was in October. Competing against the U.S. dollar, leading trader Skew warned of an increasing dollar strength that might pose a short-term challenge to risk-assets and crypto-assets like Bitcoin. On the other hand, Matthew Dixon, CEO of the crypto rating platform Evai, using the Elliott Wave theory to the U.S. dollar index (DXY), suggested a bearish outlook for dollar bulls. "DXY demonstrating a valid five-wave downturn is a promising sign for BTC and crypto. If we witness a three-wave retracement, hopefully, around the 0.618 Fib, we could then expect an additional five-wave downturn as the least case scenario, providing more ammunition for risk assets," he interpreted based on the 15-minute chart. Please note, this report does not contain investment advice or endorsements. All investments and trading endeavors involve risk, and it is advisable for readers to undertake individual study before making any decisions.
Published At
6/25/2024 6:18:06 PM
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