In a recent report released by Bitfinex, the price of Bitcoin has seen a significant rebound, reaching $70,000 today. This marks a more than 30% increase from the low point on July 5, which was previously predicted to be the bottom.
The upward momentum coincided with the Bitcoin 2024 conference. The Bitcoin options market initially experienced a surge in implied volatility, but this fell as traders reduced risk. With the large options expiration approaching this Friday, August 2, the market is expected to see consolidation and potentially even a small pullback.
Despite the breakout of the overhead resistance, net selling was evident in the market last week. This was due to profit-taking and the gradual distribution of BTC to Mt. Gox creditors. However, the market absorbed these sales well, indicating that stronger buyers are stepping in.
The realized price for short-term holders is currently at $65,700, acting as solid support. The number of open interest in the futures market has also surged, indicating a resurgence in leveraged trading. Despite the sell-off in the spot market, leveraged longs are supporting prices.
Looking ahead, the direction of the market will be crucial. Declining implied volatility and increasing leveraged positions suggest that the market could stagnate or move in a range in the short term. With key support levels holding and bullish momentum building, Bitcoin is set for an interesting week ahead. Stay tuned for more updates on the cryptocurrency market.
This is not intended as an investment advice.
