Bitcoin Drops Below $60K; Ethereum and Dogecoin Fall; But Trader Says July Is Bullish

The global crypto market capitalization has dropped by 4.7%, now standing at $2.2 trillion, with long liquidations at their highest in two months.

One trader observed that Bitcoin is currently the most oversold it has been in a year, while another trader highlighted that July has historically been a strong month for the market.

Heavy Losses in Cryptocurrency Markets Amid Bitcoin Plunge

Cryptocurrency markets experienced significant losses on Monday, with Bitcoin dropping below $60,000 for the first time in weeks. According to Coinglass data, 89,508 traders were liquidated in the past 24 hours, totaling $347.76 million in liquidations. Bitcoin long liquidations reached $132.4 million, marking a two-month high.

IntoTheBlock data indicates a 92.1% increase in exchange netflows. However, transactions over $100,000 and the number of Bitcoin holders in profit have decreased. Crypto chart analyst Ali Martinez pointed out that Bitcoin’s daily RSI has hit oversold territory three times in the past two years, leading to price surges of 60%, 63%, and 198%. He suggested that this presents a “prime opportunity to buy the dip.”

Analyst Unipcs noted that sentiment is bearish because markets have been consistently down. However, he emphasized that July has historically been a bullish month for crypto, with an average return of 8% and a median return of 10%, compared to -0.7% and -0.5%, respectively, in June.

Crypto analyst Michaёl van de Poppe commented that Bitcoin has become the most oversold it has been in a year due to the Mt. Gox news. The last two instances of similar oversold conditions were during the FTX crash and the August 2023 correction.

Rekt Capital is keeping an eye on the situation.

Source: X

Also Understand Recent Developments in the Cryptocurrency World

White House Rehires Former Crypto Adviser: The White House has rehired a former cryptocurrency adviser to the National Security Council, signaling continued focus on crypto-related policies.

Japanese Investment Firm Embraces Bitcoin Strategy: A Japanese investment firm is adopting a Bitcoin strategy similar to MicroStrategy’s, planning to purchase $6 million worth of Bitcoin using funds raised from a bond sale.

Mt. Gox Repayments and Potential Market Impact: Mt. Gox is set to begin repaying Bitcoin in July, potentially introducing $9 billion in sell pressure to the market.

Justin Sun Increases Investment in Ethereum: Crypto billionaire Justin Sun has doubled down on Ethereum, reportedly purchasing $49 million worth of assets within three days, amid excitement over the launch of spot ETFs.

Riot Platforms Seeks Board Changes at Bitfarms: In the ongoing Bitcoin miner wars, Riot Platforms is pursuing board changes at Bitfarms, indicating strategic moves within the mining sector.

Analysis by CrediBULL Crypto

CrediBULL Crypto provided a detailed analysis emphasizing the critical support zone between $58,000 and $60,000 for Bitcoin. Describing it as a “last chance” level, he suggested that failure to hold this zone could lead to further downside, potentially testing the $53,000-$54,000 range.

Despite the cautionary tone, CrediBULL Crypto noted that maintaining this support could still lead to a higher low formation above the $56,000 lows observed last month.

Looking forward, the trader highlighted the need to establish a new impulsive upward movement, as the previous bullish momentum had been invalidated.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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