Bitcoin rose to its highest level in nearly two weeks over the weekend but displayed a weak price action on Monday, with traders describing the session as "absolutely terrible." The pair is hovering near a key long-term level, while fresh data points lend a mixed outlook for near-term momentum.
BTC/USD was around $62,700, near the 200-week simple moving average (SMA), a level that traders watch as a long-term indicator. Bulls had pushed to about $63,450 on Saturday during a thinner order-book environment created by a three-day US holiday weekend. Traders cited stronger passive selling pressing prices from above as the market tried to extend gains.
Monday's session was described as challenging for BTC price action. Short-position liquidations contributed to gains earlier in the period, with data showing roughly $167 million in 24-hour crypto liquidations. One analyst noted a classic short squeeze, where price grinds higher as traders covering shorts push prices further.
“Classic short squeeze, price grinds higher into a level everyone's shorting until forced covering does the rest,”
Market participants questioned whether the critical support at around $62.6k—the weekly 200-MA—would hold or if the rally would roll over after clearing liquidity.
Another trader warned that the last seven Mondays have been marked by weakness, asking whether the pattern would repeat in the following week.
Analysts characterized the ETF inflows as a potential tailwind for crypto and broader risk assets. In a separate assessment, a move in gold—reportedly up about 2%—was viewed as a dovish signal tied to real-rate and safe-haven hedging rather than growth momentum. Market participants stressed that clearer confirmation of a dovish stance would depend on upcoming CPI data before the July FOMC meeting.
In a Friday analysis, QCP Capital highlighted potential tailwinds forming for both crypto and risk assets, noting renewed net inflows to US spot Bitcoin ETFs as part of the broader supportive backdrop. The report also pointed to macro signals suggesting a softer stance on rate hikes if inflation data align with dovish expectations.
“Crypto, though, is showing greener shoots: BTC spot ETFs snapped a six-session outflow streak to pull in $224mn on Thursday, their first positive print in over a week and an early sign that dip buyers are stepping back in after roughly $2.4bn of redemptions.”
The latest CME FedWatch data indicated a near-80% probability of the Fed holding rates at the July 29 meeting, with expectations that CPI data ahead of that meeting would be needed for broader confirmation of front-end dovish repricing.
This article adheres to editorial standards and is intended for informational purposes only. It does not constitute investment advice. All investments carry risk; readers should conduct independent research.
