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- Bitcoin (BTC) fell below $64,000 despite the correction of derivatives.
- Analysts at QCP consider that July has been one of the strongest months for Bitcoin, with average gains of around 7.5%.
- Glassnode says that Bitcoin is showing signs of structural stability, with the pressure on the market decreasing significantly.
Bitcoin (BTC) began July on a steady note, recovering above the $63,000 level as derivatives regulation and reduced selling pressure helped stabilize the cryptocurrency market.
The revision follows several weeks of volatility and comes as analysts point to improved weather conditions, strengthening technology, and improved institutional regulation as factors contributing to Bitcoin’s recovery.
At the time of writing, Bitcoin was trading at around $63,190, up about 0.6% over the past 24 hours.
July season favors Bitcoin bulls
Analysts at crypto trading firm QCP reported that Bitcoin’s recovery in early July is consistent with market history.
According to the firm, July has been one of Bitcoin’s strongest-performing months, providing an average return of around 7.5%.
QCP added that trading volume during the Independence Day holiday in the United States helped contain the risk that came after softer-than-expected US stock market data eased pressure on risk.
The company also noted that the pressure on the Bitcoin derivatives market has started to decrease.
Recent data shows that traders are becoming more defensive. QCP highlighted a number of encouraging developments:
- The implied volatility continues to decline.
- The recent skew option has declined after a high in the recent market decline.
- Traders have shown significant interest in the $70,000 call option that expires at the end of July, which indicates higher expectations.
However, there is no limit to hope.
The company also reported a $58,000 level of demand that could be reached by the end of this year, reflecting concerns among some investors that Bitcoin’s recovery could match the temporary recovery seen in the market in 2022 before prices start to fall again.
Bitcoin price prediction: BTC may fall below $63,000
The BTC/USD 4-hour chart remains strong and active following last week’s rally. Strong signals indicate that the market is consolidating.
An RSI of 55 means that neither buyers nor sellers are in control. The MACD lines are also in the neutral zone, strengthening the current bias.
If the trend resumes, BTC may drop below the $63,000 level and test the 4-hour TLQ at $61,365.
However, if the bulls regain control, Bitcoin may cross the $64,000 level and retest the June 15 price of $67,125.
