Bitcoin Investors Place $500 Million In Spot BTC Bids Below Market Price
Bitcoin looks like it’s starting to kick the week off on the right foot, suggesting the end of June’s protracted correction. While investors continue to ponder the trajectory of Bitcoin’s price in July, on-chain data, price history, and strategic transactions point to a bullish July. Despite the short-term volatility, many investors remain bearish on Bitcoin’s long-term prospects. Notably, the data shows an interesting increase of $ 500 million of bids below the spot price and an increase in open interest, as revealed by the famous crypto analyst Daan Crypto Trades.
Bitcoin Investors Bid $500 Million Under Price
Bitcoin traded most of the weekend just above $61,000 as bulls struggled to prevent another drop below $60,000. According to the BTCUSDT chart shared on social media over the weekend by Daan Crypto Trades, many strategic investors have positioned themselves below the price level to jump into Bitcoin in the event of a break below $50,000.
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This exciting strategy had over $500 million in weekend sales across price points from over $60,500 to under $58,500. The bids create a strong base of buying pressure that prevents the price from falling too far. This creates strong support levels, making it highly unlikely that we will see a capitulation-style price drop below $60,000 anytime soon.
In addition, Daan Crypto Trades has revealed a corresponding increase in Bitcoin open interest. The latest data from CoinGlass supports this claim, with a 3.11% increase in open interest on various crypto exchanges in the last 24 hours. This increase in open interest represents new money coming into the market, reflecting a positive, optimistic outlook among traders.
#Bitcoin $500M+ in bids placed below price (but often deducted) and open interest is rising.
Doubt we’ll get our regular weekend price action as promised. Relatively many actions.
The end of the quarter usually causes some interesting movement. pic.twitter.com/7SJh6EYs7J
– Daan Crypto Trades (@DaanCrypto) June 29, 2024
What to Expect in July
Bitcoin price action in June definitely surprised many investors. In particular, the digital asset fell 9.85% in June to reverse an 11.07% increase in May. This shows the volatility of cryptocurrencies and shows the ups and downs of Bitcoin over the years. Naturally, this has led to more cautious strategies by traders regarding how they approach their Bitcoin position in the new month.
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At the time of writing, Bitcoin is trading at $63,200 and is up 3% in the last 24 hours. If history were to repeat itself, Bitcoin will likely see a peak in July. As noted by crypto analyst Ali Martinez, when Bitcoin had a bad June, it tends to bounce back significantly in July. In fact, negative price actions in June preceded an average return of 7.98% and an average return of 9.60% in July. The same price action could see Bitcoin end the month between $68,000 and $69,500.
Historically, when #Bitcoin had a bad June, tending to go back too far in July. Actually, $BTC showed an average return of 7.98% and an average return of 9.60% during this month. pic.twitter.com/fJaIwc7Eob
– Ali (@ali_charts) June 30, 2024
