Bitcoin traders say the BTC trend reversal decision rests at $65K
The price of Bitcoin (BTC) is looking to recover from its losses in June, but onchain data suggests that BTC may run into resistance around $65,000.
Data from Cointelegraph Markets Pro and TradingView shows BTC trading at $62,288, down 0.5% in the last 24 hours and 8.6% in the last 30 days. This reversed all the gains made in May following an extended downtrend in June.
According to Coinglass data, while Bitcoin had a negative June, it will bounce back strongly in July. In fact, BTC showed an average return of 7.98% and 9.60% in July.
However, technical and onchain data suggest that attempts to recover this month from the $65,000 level may be reduced by sell-side pressure. A look at the daily chart shows that the price of Bitcoin will face strong resistance on its recovery path.
This is the zone between $61,817 and $56,914, at the 100-day exponential moving average (EMA) and 50-day EMA, respectively.
“In the short-term, we should expect some resistance around ~$65,000 as short-term market expectations look to break out of their positions at the ‘breakout' level,” Blockware Intelligence analysts wrote in the latest edition of the newsletter.
“Last summer, when BTC missed the STH RP support level, the price traded sideways for another two months before finally resuming.”
Note that June's decline pushed Bitcoin's spot price below the widely-tracked short-term holding (STH) cost base, raising concerns about deeper corrections.
According to data from LookIntoBitcoin, the price for short-term holders was $64,513 as of June 28, compared to the spot price, which hovered around $60,317.
Verified value or total cost base refers to the average price at which coins were last issued on-chain.
This means that short-term holders will now face losses and may try to exit the market at a loss or breakeven, adding to the selling pressure near the $65,000 mark.
In his Bitcoin analysis on X, independent analyst Ali Martinez confirmed this view by stating that BTC price may have resistance above $65,000 based on the MVRV metric.
According to Martinez, a breach of this level could pave the way for Bitcoin's rally to $78,700.
Interestingly, Bitcoin's 1-month liquidation heat map by Coinglass shows sales bids building $1.23 billion at $64,940.
Related: Bitcoin Circles $63K As Hopes Of 40% BTC Price Gains
Meanwhile, Thomas Fahr, founder of crypto company Apollo, is more optimistic about Bitcoin's potential to rise above $65,000.
“$940M worth of #Bitcoin shorts at 65K,” he said in a post on the X social media platform on July 2.
“The first Bitcoin rule is not to short Bitcoin,” he added in a follow-up post. “The flows will come, and the shorts will be punished.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
