Connect with us
Active Currencies 17816
Market Cap $3,930,471,389,631.70
Bitcoin Share 59.63%
24h Market Cap Change $-4.01

Explaining why Bitcoin’s recent price dip won’t break BTC’s stride

2min Read

Overall demand for Bitcoin has declined in June after an aggressive accumulation in early Q2.

Bitcoin
Share this article

  • BTC could trend higher despite recent correction, per an Options analytics firm. 
  • But apparent demand trended lower in June compared to April and May. 

Bitcoin [BTC] has consolidated above $100K amid heightened profit-taking, but it could rally higher. 

According to crypto options analytics firm Amberdata, the uptrend could extend despite the recent correction from $111.9K.

In a weekly market report, Amberdata’s Director of Derivatives, Greg Magadini, wrote

“To me, the bullish Bitcoin trend remains un-damaged, despite the recent pull-back. Volatility is under-performing, but I could see a slow (and consistent) grind higher in prices.”

Bitcoin

Source: Amberdata 

The attached chart showed the current implied volatility (IV, white bars) dropped to an average of 30-40% compared to historical realized volatility. 

This meant the market didn’t expect massive price swings or rallies in the mid-term, hence the gradual price outlook by Amberdata. 

Key BTC catalysts, risks

Bitwise’s Head of Alpha, Jeff Park, echoed the above projection and expected IV to reprice higher from July. 

“Bitcoin IV is so mispriced right now because the world has no idea what’s coming in Q3, but obvious to all of us on the front line. It’s going to be incredible.”

Notably, most analysts expect potential Fed rate cuts in Q3, which could juice risk-on sentiment if tariff wars are out of the way. 

In addition, Magadini said that the recent successful Circle’s IPO (initial public offering) and overall positive regulatory shift could fuel the momentum. 

“The high performing CRCL IPO, the USD trend lower (and continued downside risk) the collaborative regulatory backdrop. All are reasons for continued market participation into a steady bullish market”

However, BTC’s apparent demand has declined in June after an impressive recovery in April and May. If demand for BTC wanes further, it could extend the range-bound price action or even drag the asset lower in the short term. 

Bitcoin

Source: CryptoQuant

In fact, this bearish scenario could be accelerated if the macro front turns negative.

According to Coinbase, despite this week’s renewed trade talks between the U.S. and China in London, July 9 remains a key date to watch for other tariff deadlines. 

“We’re about one month away from the July 9 deadline on paused reciprocal tariffs for most nations (August 12 for China), so a lack of momentum on reaching deals with the European Union and Japan could still interrupt any positive sentiment, in our view.”

That said, the 7-day liquidation heatmap reinforced the range-bound price outlook in the short term. At press time, there were liquidity pockets and magnetic zones on either side of the price action.

Nearly $7 billion shorts will be liquidated if BTC reclaims $110K, with a similar amount at risk if the price dips to $100K. 

Bitcoin

Source: CoinGlass

Share
Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.
Thank you for subscribing to Unhashed.