The Bitcoin (BTC) price continued its correction on July 4, dropping 3.34% in the last 24 hours and 5.82% in the last week.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin dropped to a one-month low of $56,709 after losing the key support provided by the psychological $60,000 level.
Meanwhile, the total market capitalization has dropped by 4.23% over the last 24 hours to rest at $2.13 trillion at the time of publication. The 42% leap in the total trading volume is testimony to the sell-side intensity in the crypto market.
Bitcoin’s drop below $57,000 on June 4 has led to massive liquidations across the crypto market.
Data from Coinglass shows that over the last 24 hours, $98.04 million worth of long Bitcoin positions have been liquidated against $22.6 million worth of short liquidations.
Approximately $333.1 million of leveraged long crypto positions were liquidated in the 24 hours against $50.52 million short positions.
Despite the bearish price action across the entire crypto sector being led by Bitcoin, analysts are still optimistic about BTC’s potential recovery to higher levels.
“Bitcoin bouncing back up, now back above the 200-day EMA,” Bitcoin analyst Jelle wrote a June 4 post on X.
The analysts’ sentiments appear to have been informed by Bitcoin’s “drop below the 200-day exponential moving average (EMA) during the early Asian trading session on June 4, as earlier reported by Cointelegraph.
The trader explained that if Bitcoin price produces a daily candlestick close above this level, “we’re looking at a successful sweep of the lows,” followed by a retest of the 200-day EMA and a potential bullish divergence from the daily relative strength index (RSI).
Fellow analyst Skew shared the following chart on July 4: The Bitcoin price is retesting the “200D MA” for the first time since October 2023, before the approval of spot Bitcoin ETFs.
According to the analyst, the latest drop seen in the price of the pioneer cryptocurrency has been fueled by “trend rejection and reversal” around $64,000.
“So in order for this HTF MA to actually act as a systematic trigger for the market, we need to see market demand & reversal signs.”
At the time of publication, the Bitcoin price had coiled back above the 200-day EMA, currently at $58,256.
Rekt Capital said that Bitcoin’s current 22% pullback has lasted approximately 45 days and is “an above-average pullback.”
Meanwhile, pseudonymous analyst Yoddha simply said that the “local bottom is in” for the price of the flagship cryptocurrency.
Moustache shared similar sentiments, explaining that a retest of the 200-day EMA has “always marked a bottom range” over the last 18 months.
“I’m really getting bottom vibes here for $BTC.”
In a different post, the analyst shared the following chart, explaining that the current correction is just a healthy pull-back setting up BTC from a massive breakout on the upside after completing the Wyckoff method reaccumulation method.
“It looks like we’re currently going to experience the true “Spring”-Event in the Wyckoff-Reaccumulation Model.”
Daan Crypto Trades noticed more than $200 million in longs and has just entered its position on Bitcoin’s move back above the 200-day SMA.
“Better hope this level holds, or those positions will get taken out again. Additionally, a big $30M short got squeezed out on Bybit.”
CoinGlass data indicates that $57,615 is a significant area of 12-hour bid liquidity just below the spot price, with about $24.61 million in buy orders.
This area could provide the demand pressure required to pull Bitcoin out of the extended downtrend.