Bitcoin has surged above $61,000 relieving a constant downtrend that’s been ongoing since early June. Failing to maintain above the $62,000 one week prior, Bitcoin trades at $61,657, with a market cap of approximately $1.2 trillion. It’s pretty far from the fact that the weekly price dipped around 5%. According to market analyst Rekt Capital, Bitcoin is forming an early-stage Bull-Flag pattern. He said this could imply a potential breakout in the making: a challenge to the recent downtrend.

Bitcoin Key Support Levels 

In his analysis, Bitcoin’s current price retracement is about to reach the 22% correction the market cycle gives as a norm. This alignment with historical support levels of previous all-time highs speaks to a bullish initial reaction that might get things back into a line of price stability and rising. 

But what remains critically essential is the support level at $60,700, below which liquidations at scale may unfold. Calculations suggest that, on a breach of this price level, the damage may reach $22 million in liquidations.

Another event scheduled that traders pay attention to is the expiry of Bitcoin options contracts worth $6.6 billion. The results of this expiration may give some impetus to the price of Bitcoin in the short term. 

BTC Miner Capitulation and On-Chain Data 

On-chain data has miners selling less and less Bitcoin, which seems to point to the end of the miner capitulation. This is bullish for the market because decreased selling pressure usually brings about price stability and potential upsurge.

Given this year’s halving event, mining rewards in Bitcoin were halved extensively, meaning there was an adjustment period during which the increased selling was by miners to cover operational costs. But now, new data shows that this trend might be dropping at the moment, maybe preparing the ground for recovery in the market. 

According to CryptoQuant, the number of Bitcoin withdrawals from miner-related wallets fell by as much as 85% since the halving. It is a very bullish sign for further price action in the market, possibly leading to a continued upward rally if the market has absorbed the remaining selling volume.

Concurrently, the bullish trend in Bitcoin price coincides with the release of the U.S. macroeconomic data. Crypto markets barely reacted to the U.S. unemployment data following initial jobless claims that were lower than what analysts had predicted. 

Bitcoin prices pushed 2.3% higher in the wake of the figures, proving again the resilience to economic swings, while the U.S.- and German government sales barely saw a small hangover effect on the market as faith in Bitcoin’s comeback saw two days of net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs). Net inflows in these ETFs on June 26 stood at $21.4 million, after $31 million the previous day.

Market sentiment is positive now; however, there is a chance of getting volatility, as argued by many analysts. Bitcoin may drop to $55,000 because of the current double top pattern, descending weekly RSI, and no significant institutional buying, said Markus Thielen, 10x Research CEO. On the other hand, other analysts are turning their gaze towards the recovery case, watching the $62,600 short-term average realized price for the levels.