Price analysis

The strong bounce in Bitcoin and select altcoins shows solid demand at lower levels, suggesting traders are buying the current dip.

Bitcoin (BTC) fell to its lowest level since February, indicating panic selling among investors. However, Blockstream founder and CEO Adam Back said in a post on X that drawdowns are a “normal bull market pattern.” He said that traders should buy the dip instead of panicking.

The panic has been triggered by the liquidation of the German government’s Bitcoin holdings and the expectations that Mt. Gox creditors will also monetize their repayments. Finance analyst Jacob King said in a X post that most of Mt. Gox’s former creditors are likely to sell their holdings.

According to CoinGlass data, cryptocurrency liquidations over the past 24 hours have reached over $665 million, the highest in two months. Analysts expect the selling to continue and Bitcoin to drop to $50,000.

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Bitcoin price struggles to trade above $60,000, and the bullish setup displayed by altcoins is also beginning to crumble. Is the bull market coming to an end?

Bitcoin (BTC) again revisited the $60,000 support on July 3, indicating that the bears have maintained their selling pressure. It may not be easy to break the $60,000 to $56,552 support zone as the bulls are expected to defend it, keeping Bitcoin inside the large range for some more time.

The risk to Bitcoin’s continued sideways action could come from the selling pressure created by the Mt. Gox creditors, who may rush to book profits after receiving their repayments in early July.

However, lower levels are likely to see buying from the United States-based spot Bitcoin exchange-traded funds, which have amassed $14.8 billion in net inflows since their launch in January.

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Bitcoin is struggling to bounce off $64,500, increasing the possibility of a deeper correction to $60,000.

Bitcoin (BTC) has been trading inside a large range between $56,552 and $73,777 for several days. It is difficult to predict the direction of the breakout with certainty, because trading inside the range can be random and volatile. Hence, it is better to wait for the price to break out before establishing large bets.

Traders are becoming cautious in the short term due to the uncertainty. According to Farside Investors data, Bitcoin exchange-traded funds have witnessed outflows for the past four days. Additionally, CoinShares’ “Weekly Asset Fund Flows” report showed outflows of $600 million from digital asset investment products, the largest since March 22.

However, Cointelegraph’s analysis of Deribit derivatives data shows that Bitcoin whales and market makers are not panicking and “remained optimistic during the dip.” Several analysts have also maintained a bullish view during Bitcoin’s drop below $65,000.

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