Bitcoin traders are optimistic even as the price of BTC tests the 200-day moving average and faces the potential for further decline. They believe that Bitcoin has reached its bottom.
As of July 4, the price of Bitcoin (BTC) continued its downward trend, dropping by 3.34% in the last 24 hours and 5.82% over the past week. Data showed that Bitcoin hit a one-month low of $56,709 after losing the crucial support at $60,000.
At the same time, the total market capitalization decreased by 4.23% in the last 24 hours, reaching $2.13 trillion, indicating significant selling pressure in the crypto market.
Following Bitcoin’s decline below $57,000 on June 4, there were substantial liquidations in the crypto market. Long Bitcoin positions worth $98.04 million were liquidated compared to $22.6 million of short positions. Leveraged long crypto positions totaling $333.1 million were also liquidated against $50.52 million in short positions.
Despite the bearish trend in Bitcoin and the broader crypto market, analysts remain hopeful about Bitcoin’s potential for a recovery.
Analysts have pointed out that Bitcoin bounced back above the 200-day EMA, indicating a possible bullish divergence from the daily RSI when closing above this level.
Another analyst highlighted that Bitcoin was retesting the “200D MA” for the first time since October 2023, suggesting that demand and reversal signs are critical for the 200-day EMA to act as a trigger for the market.
Currently, Bitcoin’s price has risen above the 200-day EMA, standing at $58,256. Analysts predict that Bitcoin has hit a local bottom and are optimistic about a potential breakout in the near future.
Analysis indicates that a retest of the 200-day EMA historically marks a bottom range, leading to positive predictions for Bitcoin’s price movement in the coming months.
Market data suggests that $57,615 is a significant area for bid liquidity, potentially providing the necessary demand to reverse Bitcoin’s downtrend.