Cryptocurrency Markets May See a “Relief Rally”
After experiencing severe volatility in June, the cryptocurrency market showed some signs of rebound in early July. According to a July 2 release from crypto intelligence platform Santiment, the decrease in exchange stablecoin outflows indicates a slowdown in selling pressure, bringing a glimmer of optimism to the market.
market review
Over the past June, Bitcoin and other major cryptocurrencies have experienced significant price volatility. Bitcoin prices fell nearly 7% in June, hitting as low as $59,500, Cointelegraph Markets Pro reported. The total market value of the entire market has fallen by approximately $400 billion from a peak of $2.5 trillion, demonstrating the volatility of the market and the swings in investor sentiment.
Summarize:
Selling pressure slows: Santiment noted that exchange stablecoin outflows decreased in early July, which may mean sellers are exhausted and selling pressure is gradually waning. This phenomenon is often seen as a sign of a market bottom, potentially providing support for a market rebound.
Improving Sentiment: As markets head into July, some analysts are beginning to envision a "mitigating rebound" in the market. Although the market still faces a certain amount of uncertainty, negative sentiment and trader losses may have reached a level that provides room for market recovery.
Technical Support: From a technical analysis perspective, many cryptocurrency price charts are showing oversold conditions, which may indicate the potential for a price rebound. Investors and traders may start looking for opportunities to buy on dips to take advantage of the potential for a market rebound.
