Bitcoin Strengthens Above $61,000 as Ethereum Pushes Above $1,700
Bitcoin stabilized above the psychologically important $60,000 level on Thursday after briefly falling below $58,000 earlier this week, as traders balanced improving price momentum against on-chain indicators pointing to heightened selling activity.
Summary:
- Bitcoin traded around $61,600 on July 3 after rebounding from this week’s drop below $58,000, while Ethereum climbed above $1,710, extending the broader crypto market recovery.
- Despite the rebound, on-chain data from CryptoQuant shows Bitcoin exchange inflows exceeding 50,000 BTC per day, Ethereum deposits surpassing 1.25 million ETH, and altcoin deposits reaching their highest level in nearly two months.
- Analysts say the surge in exchange deposits – primarily driven by large holders – has historically preceded periods of elevated market volatility rather than signaling a definitive directional move.
The largest cryptocurrency trades near $61,600, while Ethereum climbed above $1,710, with both assets remaining above their short-term moving averages. The broader crypto market added roughly 1.5% over the past 24 hours, although sentiment remained cautious, with the Crypto Fear & Greed Index registering 23, firmly within fear territory, according to CoinMarketCap.
While price stabilization at the $61,000 mark suggests a temporary floor, the surge in exchange inflows warrants caution. Historically, when exchange deposits spike in tandem with a price rebound, it often indicates “exit liquidity” moves – where large holders (whales) sell into the optimism of retail traders. Investors should watch the $58,000 support level closely; a failure to hold this zone, despite the current positive sentiment, could signal a deeper retracement toward the mid-$50,000 range.
Whale Activity Dominates Exchange Flows
According to CryptoQuant, Bitcoin inflows to centralized exchanges exceeded 50,000 BTC in a single day, a level observed only a handful of times this year.
Historically, inflow spikes of this magnitude have coincided with periods of sharply higher volatility as investors transfer coins onto exchanges where they can be sold or used as collateral.
The latest increase appears to be driven primarily by large holders rather than retail participants.
CryptoQuant noted that the average Bitcoin deposit size has increased from roughly 1 BTC to 2 BTC, suggesting institutional investors and whales account for much of the recent exchange activity.
Large-holder exchange deposits have frequently acted as a leading indicator of increased selling pressure during previous market corrections.
Ethereum and Altcoins Mirror the Trend
The elevated activity extends beyond Bitcoin. Ethereum exchange inflows recently surpassed 1.25 million ETH, while daily altcoin deposit transactions climbed to nearly 45,000, their highest level in almost two months.
The simultaneous increase across multiple digital assets suggests investors are repositioning portfolios on a broader scale rather than reacting to isolated asset-specific developments.
Historically, concurrent spikes in Bitcoin, Ethereum and altcoin exchange deposits have preceded significant volatility across the digital asset market, although they have not consistently predicted whether prices would ultimately move higher or lower.
Technical Picture Improves
Despite cautious on-chain signals, short-term technical indicators have strengthened.
Bitcoin continues to trade above its 20-day, 50-day and 100-day moving averages, while the 200-day moving average remains near $60,400, reinforcing the broader uptrend.
Momentum indicators have also improved, with the Relative Strength Index (RSI) rebounding toward 60, suggesting bullish momentum has strengthened without yet reaching extreme overbought territory.
Ethereum Technical Outlook
Ethereum traded around $1,714, extending its recovery after reclaiming the psychologically important $1,700 level. The second-largest cryptocurrency remains in a constructive technical structure, trading above all major short- and medium-term moving averages.
The 20-period moving average has climbed to $1,705, with the 50-period MA at $1,701, while the 100-period MA sits near $1,678. The longer-term 200-period moving average continues to trend higher around $1,640, reinforcing the broader bullish bias as price holds comfortably above all key support levels.
Momentum indicators also point to improving strength. The 14-period RSI has recovered to approximately 61, signaling growing buying momentum while remaining below the overbought threshold of 70, suggesting further upside could remain technically supported if buyers maintain control.
Immediate resistance lies in the $1,720-$1,740 region, where Ethereum previously encountered selling pressure. A decisive break above that zone could expose the next upside target near $1,760. On the downside, initial support is seen around the 20-day moving average near $1,705, followed by the 50-day moving average at $1,701. A deeper pullback toward the 100-day moving average near $1,678 would likely be viewed as a key area where buyers could attempt to defend the prevailing uptrend.
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Despite elevated exchange inflows highlighted by CryptoQuant, Ethereum’s ability to hold above its key moving averages indicates that institutional demand and broader market strength continue to offset potential distribution pressure, leaving the asset technically stronger than it was during last week’s decline.
Liquidations Reflect Market Repositioning
Derivatives markets continue to experience elevated activity.
According to CoinGlass, roughly 95,500 traders were liquidated over the past 24 hours, with total liquidations reaching approximately $441 million.
Short liquidations exceeded $283 million, compared with nearly $158 million in long positions, indicating that recent price gains forced bearish traders to close positions.
The largest individual liquidation occurred on Hyperliquid’s ETH-USD market, totaling approximately $18.2 million.
What This Means for Retail Investors:
Periods of high volatility, characterized by whale-driven exchange inflows, are notoriously difficult to navigate. For long-term holders, these swings are often considered “noise,” while short-term traders should prioritize strict risk management.
We strongly advise against “panic buying” during recoveries and suggest utilizing Dollar-Cost Averaging (DCA) strategies to mitigate the impact of sudden price swings. Always verify on-chain data from multiple sources before adjusting your portfolio positions.
Focus Turns to $60,000 Support
Market participants continue to monitor the $60,000 area as Bitcoin’s most important near-term support level.
CryptoQuant analysts note that continued exchange inflows from whales could increase downside pressure if large holders begin actively distributing coins.
At the same time, Bitcoin’s recovery above key technical support levels suggests buyers remain willing to accumulate during periods of weakness.
For now, the combination of strengthening price action and unusually high exchange deposits points toward a market preparing for a larger move, with incoming volatility likely to define the next phase of trading rather than providing a clear directional signal.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
