Bitcoin Traders Express Optimism Despite Price Drop: What's Next for Crypto?

Bitcoin traders remain optimistic despite the recent price drop, with many believing that the bottom is in. Meanwhile, Kamala Harris's stance on crypto remains unclear, and German MP urges government to stop selling Bitcoin.

Bitcoin Traders Express Optimism Despite Price Drop

The Bitcoin price continued its correction on July 4, dropping 3.34% in the last 24 hours and 5.82% in the last week. Despite this, Bitcoin traders remain optimistic, with many believing that the bottom is in.

Bitcoin price chart

Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) dropped to a one-month low of $56,709 after losing the key support provided by the psychological $60,000 level.

“Bitcoin bouncing back up, now back above the 200-day EMA,” - Bitcoin analyst Jelle

The analysts’ sentiments appear to have been informed by Bitcoin’s drop below the 200-day exponential moving average (EMA) during the early Asian trading session on June 4, as earlier reported by Cointelegraph.

Bitcoin EMA chart

The trader explained that if Bitcoin price produces a daily candlestick close above this level, “we’re looking at a successful sweep of the lows,” followed by a retest of the 200-day EMA and a potential bullish divergence from the daily relative strength index (RSI).

Despite the bearish price action across the entire crypto sector being led by Bitcoin, analysts are still optimistic about BTC’s potential recovery to higher levels.

Bitcoin RSI chart

Long-term Holders Realize All of the Profit and None of the Losses

Data shows over 99% of Bitcoin losses were incurred by short-term holders during the past week. This is a stark contrast to long-term holders, who have realized all of the profit and none of the losses.

Bitcoin holder chart

Kamala Harris and Crypto: What We Know

If Joe Biden drops out of the presidential race, vice-president Kamala Harris has a shot at the presidency - but it’s hard to say whether that’s good news for crypto.

Kamala Harris

Kamala Harris may become the next US president. She has not made any public comments on crypto. However, she has strong ties to the tech industry.