Bitcoin

when

<ul> 
 <li aria-level="1">Bitcoin experienced a 16.2% drop early July, stabilizing at $53.5k before recovering by 9.33% in a day and a half.</li> 
 <li aria-level="1">Anticipated short-term trading range for Bitcoin is between $58.8k and $53.5k, with $56.2k acting as mid-range support.</li> 
</ul> 
Continuing with the reports about the decline of Bitcoin in <a href="https://www.ethnews.com/bitcoin-plummets-below-60000-amid-market-wide-sell-off-and-mounting-pressure-from-mt-gox-repayments/">ETHNews</a>, recent data indicates a potential for a price range formation. Analyzing the recent trends, Bitcoin dropped by 16.2% from the beginning of July to the 5th, finding a temporary floor at $53.5k. 
<div class="cryptoboxes" id="mcw-12344" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-chartcoin="BTC" data-chartcurrency="USD" data-chartrate="1.000268" data-charttype="chart" data-chartview="day" data-charttheme="light" data-chartsmooth="true" data-chartareacolor="" data-chartbgcolor=""></div>
</div> 
This decrease was followed by a 9.33% recovery over the subsequent day and a half, suggesting a stabilization might be setting in. 
<figure id="attachment_80857" aria-describedby="caption-attachment-80857" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="wp-image-80857 size-full" src="https://www.ethnews.com/wp-content/uploads/2024/07/MD-3-BTC-price-e1720423571286.png" alt="" width="1940" height="986">
 <figcaption id="caption-attachment-80857" class="wp-caption-text">
 Source: Tradingview
 </figcaption>
</figure> 
The analysis of liquidation charts and recent price actions <a href="https://www.ethnews.com/cryptoquant-ceo-discusses-bitcoins-resilience-despite-recent-government-seizure-sales/">by ETHNews</a> shows that Bitcoin may establish a short-term trading range between $58.8k and $53.5k. On July 5th, the mid-range level of $56.2k acted as a support when prices attempted an upward correction. 
<figure id="attachment_80862" aria-describedby="caption-attachment-80862" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-80862" src="https://www.ethnews.com/wp-content/uploads/2024/07/MD-3-BTC-3-month-heatmap.png" alt="MD-3-BTC-3-month-heatmap" width="1866" height="1050">
 <figcaption id="caption-attachment-80862" class="wp-caption-text">
 Source: Hyblock
 </figcaption>
</figure> 
&nbsp; 
Despite these fluctuations, the overall sentiment remains cautious as Bitcoin’s price movements have been closely tied to large liquidation levels particularly around $55.5k, drawing prices toward this region. 
<figure id="attachment_80866" aria-describedby="caption-attachment-80866" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-80866" src="https://www.ethnews.com/wp-content/uploads/2024/07/MD-3-BTC-7-day-liq-heatmap.png" alt="MD-3-BTC-7-day-liq-heatmap" width="1866" height="1050">
 <figcaption id="caption-attachment-80866" class="wp-caption-text">
 Source: Hyblock
 </figcaption>
</figure> 
The On-Balance Volume (OBV) indicator continues its downward trend, hinting at sustained selling pressure. Additionally, the Relative Strength Index (RSI) on the four-hour chart faced rejection at the neutral 50 mark, though there’s potential for an increase if Bitcoin approaches the higher end of the current range. 
<figure id="attachment_80870" aria-describedby="caption-attachment-80870" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-80870" src="https://www.ethnews.com/wp-content/uploads/2024/07/MD-3-BTC-liq-levels.png" alt="MD-3-BTC-liq-levels" width="1866" height="1050">
 <figcaption id="caption-attachment-80870" class="wp-caption-text">
 Source: Hyblock
 </figcaption>
</figure> 
Looking ahead, a amount of liquidations has accumulated near the $59k mark, aligning with the upper boundary of the projected trading range. This zone may serve as a magnet for price in the short term, potentially leading to increased market activity as traders position themselves around these critical levels. 
<figure id="attachment_80874" aria-describedby="caption-attachment-80874" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-80874" src="https://www.ethnews.com/wp-content/uploads/2024/07/BTCUSD_2024-07-08_03-31-33.png" alt="BTCUSD_2024-07-08_03-31-33" width="1692" height="959">
 <figcaption id="caption-attachment-80874" class="wp-caption-text">
 Source: Tradinview
 </figcaption>
</figure> 
Despite the lack of strong bullish momentum to drive a sustained rally beyond $60k, and taking into account the <a href="https://www.ethnews.com/over-1-billion-in-bitcoin-moved-to-exchanges-analyzing-the-recent-surge-and-its-market-impact/">previous reports</a> that we have written, market participants should remain vigilant. The probability of a bearish reversal from the $59.2k region is high, especially with expected volatility at the New York market open.&nbsp; 
The post <a href="https://www.ethnews.com/bitcoins-short-term-demand-challenges-and-price-recovery-insights-and-strategies/">Bitcoin’s Short-Term Demand Challenges and Price Recovery: Insights and Strategies</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Bitcoin’s Short-Term Demand Challenges and Price Recovery: Insights and Strategies

ETHNews

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