On July 29, Bitfinex released a report stating that the price of Bitcoin reached $70,000 today, rebounding more than 30% from the low point on July 5, which we previously predicted might be the bottom at the time.
This upward momentum coincided with the Bitcoin 2024 conference. Implied volatility in the Bitcoin options market initially surged, but then fell as traders reduced risk. With the upcoming large options expiration on Friday, August 2, consolidation and even a small pullback are expected.
Indeed, despite the breakout of the overhead resistance, net selling was evident in the market last week, as profit-taking weighed on the market, coupled with the gradual distribution of BTC to Mt. Gox creditors. However, the market absorbed these sales well, indicating that stronger buyers are stepping in. Moreover, the realized price for short-term holders is currently at $65,700, acting as solid support. The number of open contracts 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, where the market moves next 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.
