Bitcoin, 25 July Wall Street opening saw US stocks recover from their worst day since 2022, revisiting $65,000. TradingView data showed a recovery in Bitcoin price after initial selling pressure. Popular trader Skew noted that it was due to trade algorithms, highlighting a particular entity he called an agricultural seller.
What’s Happening on the Bitcoin Front?
In his latest X update, a popular analyst shared insights on the process he described as a great example of liquidity plays this morning:
“Aggro sellers lowered prices before large passive buyers arrived. The price momentum is essentially positions covering repeatedly until it closes, and then the market is net long. So, likely another reversal trade later.”
Skew and others observed a modest recovery in the US stock markets, which had previously experienced significant losses. Nasdaq fell 3.6% on 24 July, marking its worst day since November 2022. The S&P 500 lost 2%. Bitcoin exhibited similar behavior, reaching a local low of $63,424.
The Personal Consumption Expenditures (PCE) Index came in lower than expected; with declining spending, the potential for a rate cut increased. However, both initial and continuing jobless claims were below expectations, indicating a resilient labor market and reducing market observers’ predictions for cuts at the Fed’s next meeting on 31 July. Data from CME Group’s FedWatch Tool confirmed that the likelihood of a reverse move by the Fed was already very low.
Statement from a Famous Analyst
Meanwhile, popular trader and analyst Rekt Capital emphasized the importance of the current struggle to turn $65,000 into support. This level represents the realized price of Bitcoin’s short-term holder, and the analyst shared the following on X:
“Bitcoin is currently in the process of retesting the $65,000 level in a volatile manner. For the retest to be successful and the price to remain in the $65,000 to $71,500 (red) range, the daily close now needs to be above $65,000 (blue).”
Previously, Rekt Capital predicted that the BTC/USD pair might need only two months to reach an all-time high.
