The crypto market never sleeps and early July is already heating up. Bitcoin just extended its gains, leaving short sellers in complete disbelief. If you look at the data from global crypto outlets, bitcoin managed to post a solid 6.1% gain since late June. This performance completely outperformed the S&P 500 which remained flat and gold which only gained a modest 4.8%. Thanks to this bullish momentum, Bitcoin is now hovering above $62K and heading toward $63K. This move pushed the total crypto market cap back above $2.15 Trility with Bitcoin dominance standing strong at 57.84%.
The domino effect of this rapid pump was a massive short squeeze. Within a very short window, over $100 million worth of short positions were completely wiped out. Looking closely at the detailed derivatives data, the total liquidations in the past 24 hours reached $64.67 million, with shorts heavily dominating at $55.59 million. Binance remains the main battlefield with its futures volume hitting $9.17 billion, followed by OKX at $3.98 billion. Interestingly, the long and short ratio across top exchanges is now comfortably above 1.4, which means the majority of traders are feeling confident enough to go long again.
So what exactly triggered this sudden wave of buying power? The answer lies in the institutional money flowing back into spot ETFs. After suffering consecutive days of heavy outflows in late June, the data from July 2 shows a complete trend reversal. We saw a net positive inflow of 3.73K BTC, mostly driven by FBTC with 2.77K BTC and ARKB with 1.53K BTC. On top of that, $BTC correlation with the S&P 500 currently sits at 56%. This proves that the latest pump is not just a localized crypto event but is heavily backed by global macro liquidity.
For the next short term targets, Bitcoin has a strong potential to test the 50 SMA around $67,030 because there is a Fair Value Gap zone sitting right there waiting to be filled. If the price successfully breaks above that level, the next targets lie within the $72K to $80K range, with the ultimate long term psychological resistance target pointing all the way up to $90,000.
My Opinion
Looking at all the accumulated data, I truly believe this bounce is completely valid and not just a temporary fake pump. The return of big institutional money into ETFs is solid proof that smart money is comfortable accumulating at these lower price levels.
However, as a trader, I am personally not going to rush in or blindly fomo into a Long position right here, especially since the Stochastic indicator on the daily chart is already extended into overbought territory. My game plan is to simply wait for a healthy correction or a retest to the nearest support level. If we get a clean bounce confirmation at that support, that is where I will look for a low risk and high reward Long entry. My initial target remains realistic, which is looking for a gap fill at the $67K FVG area before making any wild guesses about the $90K mark.
Source
- IG Market Insights - US June NFP Jobs Data Drops to 57K Boosting Bitcoin Recovery
- Coin Bureau
- Whale Factor
Posted Using INLEO
