$60.4K Named Key Support as Bitcoin Hits $63,960

Bitcoin found support near $60,400 as the price climbed to about $63,960, its highest level since June 23. Analyst Killa wrote that the $60,400–$60,900 area is the “most important” support and warned that a failure to hold that zone on a revisit could push the token back toward recent lows. The move higher coincided with more than $100 million in short liquidations across exchanges.

Exchange order-book data showed cumulative volume delta on spot markets trending down while perpetual futures volume remained flat, a pattern consistent with liquidity hunting in lower time frames. Total short liquidations exceeded $100 million in the 24-hour window reported by market trackers.

Trader Roman, previously bearish, posted that conditions look favorable for a short-term reversal to higher prices but added there remains a possibility of one more macro low before an official bottom. Market positioning reflected a mix of reduced short exposure and traders seeking nearby liquidity.

US equity futures rose after the holiday weekend, with Nasdaq 100 futures gaining about 1% and the S&P 500 holding a bullish continuation pattern. Options flow data showed record retail demand for short-dated options. Futures pricing indicated a high probability that the Federal Reserve will hold rates steady in both July and September.

Andre Dragosch, head of European research at Bitwise, flagged a risk model that matched readings seen in late 2021 and raised the possibility of a larger stock-market correction ahead of the US midterm elections. Dragosch wrote that much of the potential downside from a severe macro shock appears already reflected in Bitcoin prices and that Bitcoin has a chance to outperform the Nasdaq on a relative basis over coming months.

On-chain analytics showed a marked drop in whale inflows to exchanges. CryptoQuant data indicated Binance whale inflows have fallen sharply since mid-June, with the rolling 30-day value down by nearly $2.4 billion. Retail inflows declined from about $10.02 billion on June 12 to $8.2 billion by July 6. Contributor Amr Taha noted the reduction in whale activity has reduced the role of large holders in exchange-bound Bitcoin supply and said the key question is whether whale inflows will stabilize around $4.65 billion or continue lower.

Market sentiment improved but remained cautious. The Crypto Fear & Greed Index rose to 24/100, moving toward an exit from “extreme fear” for the first time in over a month. A trader using the handle Master of Crypto wrote that “Fear is easing, not gone.” Blockchain advisor Anndy Lian wrote that a successful breakout above $65,000 would open a test of the 100-day moving average near $69,500, while failure to sustain momentum would expose Bitcoin to significant downside.

Traders and analysts expect continued volatility as markets await the Federal Reserve minutes from June’s meeting, upcoming purchasing managers’ index readings, employment reports and the start of corporate earnings season.