Bitcoin Rebounds After 21-Month Low, Regains $60,000 as Leverage Risks Persist
Forecast Trend Report by Period
Bitcoin rebounded after falling to a 21-month low, but leverage indicators are still flashing warning signs.
Cointelegraph reported on July 1 that Bitcoin fell as low as $57,737 during the session, its lowest level in 21 months, before rebounding to $60,200. It was up about 2.7% over the past 24 hours. Ether and Solana also rose 3% and 4.85%, respectively.
Despite the rebound, market sentiment remained deeply depressed. The Crypto Fear & Greed Index stood at 11 out of 100, leaving it in extreme fear territory. Bitcoin is still down by about one-third from the start of the year.
Fund-flow indicators also remained weak. US spot Bitcoin exchange-traded funds have seen outflows exceed inflows in recent weeks, and total outflows for June reached $4.5 billion, the largest monthly exodus since the products launched.
On-chain data, however, showed some positive signals. Long-term holders added about 270,000 BTC over the past two weeks, suggesting some large investors viewed the recent selloff as a buying opportunity.
Leverage metrics remain a source of concern. Funding rates stayed positive for a third straight day even as Bitcoin made fresh lows. When long positions build during a price decline, another drop can trigger a cascade of forced liquidations.
Hyblock data showed leveraged positions are now most concentrated in the $57,000 to $60,500 range. Forced liquidations could accelerate if Bitcoin rises above $61,000 to $62,000 or falls below $55,000 to $56,000. Cointelegraph maintained a neutral 24-hour outlook, saying a meaningful reversal would require both a price increase and a buildup in leveraged positions.
