Bitcoin's Bounce Falters as Bearish Price Structure Remains

Bitcoin's short-term recovery effort has been gaining momentum, but its price structure remains bearish. On July 3rd, BTC managed to challenge the $63K-level but failed to surpass it. The bounce from $58.5K at the start of the month appeared set to continue, with overleveraged short positions being caught off-guard by this move.

According to AMBCrypto, a total of $143 million in short liquidations have been recorded for Bitcoin so far this month. The heavy spot ETF outflows indicated that most weak hands may have left the market, and the recent move may be a bullish reversal rather than just a short squeeze.

The overhead BTC supply caps any recovery effort, with significant clusters at $64K and $67K levels where a sizeable amount of BTC was acquired. If there is a significant bounce, underwater holders who acquired Bitcoin at these price levels can look to exit the market at breakeven.