Bitcoin Slumps into July Close as Analysts Warn of Bear-Market Repeat
Bitcoin price sinks to 2-week lows as US stocks fail to copy Asia rebound. Analysts warn of bear-market repeat in August.
Intelligence analysis by Llama
Bitcoin price falls to 2-week lows as US stocks diverge from Asia's relief bounce. Analysts warn of bear-market repeat in August.
Imagine you're on a rollercoaster, and it's going down a big hill. That's what's happening with Bitcoin's price right now. It's falling to its lowest levels in over two weeks because US stocks aren't copying the relief bounce seen in Asia. Analysts are warning that this might be a repeat of the bear market from four years ago.
Analysis
Bitcoin Price Targets $62,000 in Month-End Volatility
Bitcoin (BTC) fell to its lowest levels in over two weeks on Friday as US stocks saw pressure into the monthly close. Data from TradingView showed BTC/USD falling 3.5% to reach $62,369 on Bitstamp, a level last seen on July 14. This move was in contrast to the relief bounce seen in Asia, where South Korea's KOSPI index ended the day up 17.9%, its largest single-day gain on record.
Analysis Warns of Bear-Market Repeat in August
Analysis warns that Bitcoin bear-market history should continue to repeat in August. Trader and analyst Rekt Capital forecast that the tide might not turn immediately, citing the 50-month exponential moving average (EMA) as resistance. The 50-month EMA is currently at $65,820 and has acted as resistance after two failed breakouts since mid-June.
Growing Relationship Between Crypto Liquidity and Regional Equity Positioning
QCP Capital noted that crypto market trading activity increased around the KOSPI gyrations, highlighting the growing relationship between crypto liquidity, regional equity positioning, and broader technology-sector sentiment. This relationship is particularly relevant given the high exposure of the KOSPI index to the global AI and memory-chip cycle.
Key points
- Bitcoin price falls to 2-week lows as US stocks diverge from Asia's relief bounce.
- Analysts warn of bear-market repeat in August.
- Growing relationship between crypto liquidity and regional equity positioning.
- 50-month EMA acts as resistance, preventing Bitcoin from breaking through to new highs.
If the US stocks start to follow Asia's relief bounce, Bitcoin's price might start to rise again. This could happen if the semiconductor industry starts to recover, which would boost the KOSPI index and other Asian stocks.
If the bear market repeats in August, Bitcoin's price might fall even further. This could happen if the 50-month EMA continues to act as resistance, preventing Bitcoin from breaking through to new highs.
