Bitcoin rose to $64,000 after its sharp drop in June. However, it fell back to $61,000 due to the impact of macroeconomic and geopolitical developments.
Analysts are divided on whether Bitcoin’s recent rise is a permanent reversal or just a temporary relief.
At this point, Wintermute analysts argue that there is a relief rally in Bitcoin, but recent movements do not represent a bullish trend reversal.
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Bitcoin is showing signs of a bottom!
Besides Wintermute, Bitfinex analysts also evaluated $BTC’s recent movements and stated that forced selling in $BTC is running out and that it may be entering a bottom formation phase.
Analysts in the latest Bitfinex Alpha report suggest that Bitcoin may be beginning to form a market bottom, noting that even after a large $BTC sale by Strategy, there was no significant selling pressure. They also point out that Strategy’s sales did not cause panic, Bitcoin remained resilient, suggesting that the market may be entering a bottom-forming phase.
The report stated that $BTC experienced a strong recovery from its cyclical low of $57,803, supply and demand dynamics improved, and spot ETFs recorded net inflows for three consecutive trading days.
Analysts also noted that July has historically been a positive month for Bitcoin. However, they cautioned that seasonal patterns alone are not enough to sustain a recovery.
Bitfinex analysts recently stated that Bitcoin is trending downwards on a longer timeframe, adding that it’s still too early to talk about macro bottoms.
However, they stated that a steady recovery to around $71,500 is necessary to confirm a final bottom formation in $BTC. They added that the next two to three months will be critical to see whether a gradual bottom formation will occur at this point.
*This is not investment advice.
