Bitcoin rose to $22,528, its highest price since June 16, up more than 5.72% on the day.
The apparent rebound in bitcoin prices has given the market a strong rebound confidence, thus increasing investor bullish sentiment.
The market is now widely expected to extend gains, consolidate gains from this rally and maintain confidence in the medium term.
Mike McGlone, senior commodity strategist at Bloomberg, thinks bitcoin prices will rebound in the second half of 2022.
He sees positive signs in the 50 - and 100-week moving averages of Bloomberg Galaxy Crypto Index(BGCI) and BTC prices. He said current indicators were showing signs similar to the bottom of the bear market in 2018, which was followed by a strong rebound in the first half of 2019.
"With the Bloomberg Galaxy Crypto Index heading for a similar decline towards the end of 2018, and bitcoin's discount to its 50 - and 100-week moving averages on a similar basis to past ones, the risk-return will be skewed towards responsive investors in the second half of the year."
From the performance of the data on the chain, there is indeed a phenomenon to support the rise:
First, the stock of the exchange has hit a new low in three years, the market purchasing power is strong, and the foundation for growth is obvious.
Chain analyst Phyrex tweeted that from the stock data of the exchange, after today's substantial reduction, the stock of the exchange BTC again ushered in the lowest value in nearly three years, although this does not directly affect the price of BTC, but reflects a strong purchasing power.
Additionally, CryptoQuant CEO Young Ju tweeted that I haven't seen any significant activity on the Bitcoin chain in the past 7 days. He believes the bitcoin market will not be affected by seller liquidity as long as the chain is quiet.
Second, the liquidation crisis brought by the sharp market decline has gradually subsided, the market deleveraging cleaning results are remarkable, the market trough crisis weakened, the rebound is inevitable.
Mike Novogratz, founder of Galaxy Digital, said in an interview with CNBC that the deleveraging process for cryptography feels 90 percent complete, but the problem is that price hikes require a bigger narrative and new capital.
Third, retail and uncertain users have been cleaned up and the market has a more positive basis.
So-called "market tourists" are fleeing bitcoin, leaving only long-term investors holding and trading the top cryptocurrency, according to data from blockchain analytics firm Glassnode. June was one of bitcoin's worst months in 11 years, down 37.9%, Glassnode analysts said in the chain's last week report on July 4. He added that the activity on the bitcoin network coincided with the worst of the bear market in 2018 and 2019, and wrote: "The bitcoin network is approaching a state where almost all speculative entities and market tourists have been completely purged of the asset."
Fourth, the industry as a whole is expanding, with ADV growing 74% in June 2022 compared to June 2021.
CME Group (NYSE: CME) today released its market statistics for the second quarter and June 2022, with average Daily Volume (ADV) contracts increasing 30% to 24 million contracts in June. Among them, the record quarterly Micro Ether futures ADV of 2Q22 in 2022 was 21,311 contracts, the record quarterly Average daily trading volume of Ethereum futures was 6,588 contracts, bitcoin Futures ADV was up 12% and micro Bitcoin Futures ADV was up 3% compared to 2Q21.
In addition, cryptocurrency ADV increased 74% in June 2022 compared to June 2021, with a record monthly average daily trading volume of 8,988 contracts for Ether futures and a 54% increase for Bitcoin futures.
However, from the current market trend, the real inflection point did not appear, and the fall caused a large amount of capital and user loss, only with the stock of capital, it is difficult to achieve a breakthrough rise.
Therefore, the market probability is only a small rebound, the market is gradually stable, if there is no injection of large funds, or a big positive, the market is difficult to break through the status quo, shock will become the mainstream.