Bitcoin traders focus on $60,400 support after two-week high

Bitcoin pushed close to a two-week high, giving crypto investors a cleaner bounce to track after a rough stretch. The next test is whether the move can hold key support near $60,400 and build enough strength to challenge the $65,000 area analysts are watching.

Bitcoin traded as high as $63,960 into the weekly close, its strongest level since June 23, according to TradingView data cited by Cointelegraph. CoinGlass data showed more than $100 million in total crypto short liquidations over the prior 24 hours. Short liquidations happen when traders betting on lower prices are forced to close positions, which can add buying pressure during a rally.

Several traders framed the move as a run toward nearby liquidity. In market terms, liquidity refers to clusters of buy or sell orders that can attract price because they offer enough volume for larger traders to enter or exit positions. The X account Exitpump pointed to order-book data and said spot cumulative volume delta, a measure comparing aggressive buying and selling, was weakening while perpetual futures activity stayed flatter.

Trader Killa said the $60,400 to $60,900 range is the area Bitcoin needs to defend if price pulls back. Killa told followers on X that losing that region on a retest could put recent lows back in play.

Other analysts remained more constructive on longer time frames. Trader Roman, who had previously held a bearish view on BTC/USD, said Bitcoin still looked positioned for a shorter-term reversal higher, while adding that one more broader market low could still come before a lasting bottom.

Stocks and rates stay in the mix

Bitcoin’s relationship with equities is still part of the discussion. Nasdaq 100 futures rose 1% as U.S. markets reopened after the holiday weekend, while Mosaic Asset Company wrote in its Market Mosaic newsletter that the S&P 500 had gained 15% in the second quarter and was still trading in a bullish continuation pattern.

Mosaic also said broader stock participation had improved, pointing to records for the equal-weight S&P 500, the Russell 2000 small-cap index and the NYSE advance-decline line. That matters for crypto because stronger appetite for risk assets can support demand for volatile markets, though Bitcoin does not always track stocks closely.

Interest-rate expectations also remain relevant. CME Group’s FedWatch Tool showed markets pricing in the Federal Reserve holding rates steady at its July and September meetings. Lower expectations for rate hikes can help risk assets because higher rates tend to make safer cash-like returns more attractive.

The Kobeissi Letter, citing options data, said retail demand for short-term options has reached record levels. Options are contracts that give traders the right to buy or sell an asset at a set price, and heavy use of short-dated contracts can signal a strong appetite for risk.

Exchange flows and sentiment improve

CryptoQuant contributor Amr Taha said Bitcoin inflows to Binance fell from both large holders and retail investors in the second half of June. Whale inflows, referring to transfers from large Bitcoin holders, dropped by nearly $2.4 billion on a rolling 30-day basis, while retail inflows fell from $10.02 billion on June 12 to $8.2 billion on July 6.

CryptoQuant cautioned that exchange inflows do not prove investors plan to sell. Still, Taha said a further drop in whale inflows would support the view that large holders are becoming less active on Binance compared with retail users.

Sentiment has also recovered from recent lows. The Crypto Fear & Greed Index reached 24 out of 100 on Monday, more than double its level at the start of July, according to Alternative.me. Trader Master of Crypto said on X that fear was easing, while noting the index remained in “Extreme Fear.”

Blockchain adviser Anndy Lian wrote in analysis this week that Bitcoin bulls still need a break above $65,000 to strengthen the case for a broader test of the 100-day moving average near $69,500. Until then, traders are treating the rebound as progress that still needs confirmation.

This story draws on original reporting from Cointelegraph.