Bitcoin rebounds above $60,000 after $57,735 low triggers buying surge

Bitcoin staged a V-shaped recovery above $60,000 on July 1 after hitting a fresh yearly low of $57,735, with a surge in spot volume flipping bearish momentum in hours.

Bitcoin rose 3.9% to $60,142 as of 14:30 UTC after touching $57,735, its lowest level since October 2023, according to CoinGecko data.

The rebound triggered $371.6 million in liquidations across 94,961 traders in the past 24 hours, with short positions accounting for the majority of the squeeze, Coinglass data shows. Cumulative 24-hour volume on Binance reached 2.04 million BTC, above the recent daily average.

The move came after Bitcoin closed below its 200-week moving average of $62,444 for the first time since October 2023, a level that had acted as a floor in prior cycles. Open interest rose 2.18% to $45.05 billion even as price fell, a setup that often precedes a short squeeze when buyers return, Coinglass data shows.

The V-shaped recovery puts the $62,000 level — where the 20-day exponential moving average sits — as the next resistance to clear. A failure to hold above $60,000 could see Bitcoin retest the $57,000 to $58,000 zone, while a break above $62,000 opens a path toward the 50-day EMA at $66,300.

The recovery came after nine consecutive days of spot Bitcoin ETF outflows totaling $2.42 billion, according to data tracked by Bloomberg. More than 10.5 million Bitcoin — roughly 52 percent of circulating supply — is now held at a loss, Glassnode data shows, a metric that has historically coincided with major cycle bottoms. The last time loss supply exceeded profit supply was in November 2022, near the cycle low of $15,500.

Bitcoin entered the third quarter after a 14.2 percent decline in the second quarter, its worst quarterly performance since the 2022 bear market. The June monthly candle printed as a Marubozu pattern — a solid red body with virtually no wicks — showing complete bear dominance throughout the month, a rare occurrence on monthly timeframes. Analysts had flagged the $48,000 to $55,000 range as a potential bottom zone if selling continued.

The next catalyst for direction is Friday's US non-farm payrolls report. A strong print would reinforce expectations of a Federal Reserve rate hike before year-end, adding pressure on risk assets including Bitcoin. A softer reading could ease rate-hike fears and give Bitcoin room to extend its recovery. The relative strength index on the daily chart sits at 32.82, near oversold territory but not yet at the sub-30 level that has historically marked durable bottoms.

This article is for informational purposes only and does not constitute investment advice.