Bitcoin traded around $62,700 on July 5, slightly higher than the previous day, with a cumulative gain of over 4% over the past seven days. This rebound was primarily driven by capital inflows into U.S. spot Bitcoin ETFs and short covering, but trading volume has not significantly increased, leaving the market cautious about the sustainability of the rally.
Short covering drives the price higher
According to crypto.news, citing market data, Bitcoin’s market capitalization for the day was approximately $1.26 trillion, with a 24-hour trading volume of about $17.57 billion. Trader Daan Crypto Trades noted that the price approached $63,000 on July 4, triggering two consecutive short squeezes, forming a classic short-covering pattern.
Currently, market focus is centered around the $62,600 level, near the weekly 200-week moving average. If price holds above this level, the short-term rebound may continue; if it breaks below, attention may shift back toward the $60,000 level and the low area from the end of June.
Even after ETF funds flowed back, volume confirmation is still lacking.
Previously, Bitcoin rebounded near $61,700 amid a resumption of net inflows into U.S. spot Bitcoin ETFs. The report noted that for further improvement in price action, Bitcoin needs to reclaim $62,800 and break above $65,000.
From the current market perspective, rebound momentum has somewhat recovered, but confirmation signals remain insufficient. The MACD indicator has turned positive, with the fast line above the slow line, indicating a回暖 in short-term buying interest. However, both lines remain below the zero axis, suggesting that the broader trend has not yet fully reversed.
- Key support near current price: $62,600
- Key observation zone below: $60,000
- Lower support zone: $58,100 to $58,500
Resistance remains above $67,500 to $71,000.
Analyst BATMAN believes that Bitcoin's daily chart remains within a descending wedge, and the RSI has formed a bullish divergence. This typically indicates that while price continues to make new lows, momentum is not worsening, suggesting selling pressure may be diminishing.
He noted that if a clearer breakout occurs subsequently, the price range of $67,500 to $71,000 could become a new liquidity target. However, before that, the market must first achieve a valid breakout above the resistance zone of $63,000 to $65,000.
Additionally, the Parabolic SAR indicator is currently near $58,100 and remains below the price, indicating that the short-term structure has not yet weakened. However, if the price falls back below this level, selling pressure could rise again.
Saylor's statement did not change the market's cautious tone.
Michael Saylor recently posted on X, stating, “Bitcoin is digital energy.” This statement continues his longstanding narrative on Bitcoin, which holds that Bitcoin’s value is increasingly determined by capital markets, credit conditions, and institutional adoption—not just miner supply cycles.
However, for short-term trading, the market is currently focused on whether the price can hold key moving averages and sustain increased volume. Although Bitcoin has rebounded from its late-June low and completed a short squeeze, if it fails to decisively break above $65,000, the rally still appears more like a liquidity-driven recovery rather than a broader trend reversal.