Bitcoin (BTC) rallied back above the crucial $60,000 level as USD strength faltered. Traders predict a relief rally for July amid market expectations of a broader dollar trend change.
In early trading on Wednesday, Bitcoin (BTC) surged past $60,000 at the start of July's first US trading session. The rally was driven by positive stock market performance and a cooling in USD strength, which had reached local highs earlier that day. This rebound comes after BTC experienced significant volatility, with 24-hour long liquidations exceeding $200 million.
Traders noted that the recent price action indicated potential exhaustion at around $60,700, suggesting a possible reversal near this level. Fellow traders expressed optimism about maintaining a range between $58K and $61K for the time being, with some anticipating decisive breaks in either direction.
The weakening USD played a key role in BTC's recovery. The US Dollar Index (DXY) reversed from its recent highs of 101.6 to lower levels, easing pressure on risk assets like cryptocurrencies. This shift was seen as part of broader market expectations that the long-term USD trend might be changing soon.
Market participants maintained a bullish outlook for BTC in July, predicting a relief rally following June's downturns. Analysts cited historical patterns suggesting Bitcoin could see upside expansion during this month before potentially returning to bearish moves in August. The overall sentiment among traders was cautiously optimistic about the upcoming period.
The rebound underscores the interplay between USD strength and crypto markets. As the US dollar faces increased speculative long positioning, there's a growing expectation that such trends might soon reverse. This dynamic could have significant implications for both traditional financial markets and cryptocurrencies in Q3 of 2026.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.