Bitcoin (BTC) Price Continues Correction, Drops to One-Month Low of $56,709

The Bitcoin (BTC) price took a hit on July 4, dropping 3.34% in the last 24 hours and 5.82% in the last week. This correction saw Bitcoin hitting a one-month low of $56,709 after losing key support at the $60,000 level. The total market capitalization also dropped by 4.23% to $2.13 trillion.

The sell-off in the crypto market led to massive liquidations, with $98.04 million worth of long Bitcoin positions being liquidated in the last 24 hours. Despite the bearish price action, analysts remain optimistic about Bitcoin’s potential recovery to higher levels.

Analyst Jelle noted that Bitcoin has bounced back above the 200-day EMA, signaling a potential bullish divergence. Fellow analyst Skew shared a chart showing Bitcoin retesting the 200-day MA for the first time since October 2023.

At the time of publication, Bitcoin had coiled back above the 200-day EMA at $58,256. Analysts like Rekt Capital and Yoddha believe that the local bottom is in for Bitcoin, with a retest of the 200-day EMA marking a bottom range over the last 18 months.

Moustache also shared similar sentiments, suggesting that the current correction is setting up Bitcoin for a massive breakout on the upside. Daan Crypto Trades noticed significant bid liquidity at $57,615, which could help pull Bitcoin out of the extended downtrend.

Overall, while the recent correction may have spooked some investors, analysts are seeing signs of a potential recovery for Bitcoin in the near future. As always, readers are advised to conduct their own research before making any investment decisions.