[DigitalToday reporter Yoonseo Lee (이윤서)] Bitcoin regained the $61,000 range on the first trading day of July.

Cointelegraph, a blockchain media outlet, reported on July 1 (local time) that bitcoin extended gains around the Wall Street open and rose to $62,000 on Bitstamp.

The rebound came as the U.S. dollar’s strength eased. The U.S. dollar index (DXY) pulled back from an early 101.6 short-term high, and U.S. stocks also turned higher after early volatility.

Volatility in the crypto derivatives market was high before the price rebound. The monthly bitcoin-dollar candle retested multi-year lows as the new month began, and 24-hour crypto long liquidations topped $200 million, according to CoinGlass. That suggests liquidations built up during the sharp drop later helped fuel the rebound.

Short-term traders focused on the possibility of a reversal from the lows. Trader Lennart Snyder (레나르트 스나이더) assessed the rise during New York trading hours by saying, "Bitcoin is showing a positive surge." He said a reversal could unfold in that time window and added that signs of fatigue could appear before the price reaches $60,700.

Another market participant also watched for a break above or below the top and bottom of the range. Daan Crypto Trades (단 크립토 트레이즈) said a breakout could occur if bitcoin clearly targets either end of the short-term range. He said the market should watch for now whether the $58,000 to $61,000 band becomes a new range.

Caution over dollar moves continued. Research firm The Kobeissi Letter warned that dollar long positions were overly crowded and that a turn in direction could appear soon. It said speculative net long positions in the U.S. dollar stood at $34.3 billion as of June 23, the highest in 18 months. The reading was seen as a signal that easing crowding in dollar positions could create a favorable environment for risk assets such as bitcoin.

Some in the market are also gaining confidence again in forecasts for a relief rally in July. Trader Titan (트레이더 타이탄) pointed out that the monthly bitcoin candle closed below a long-term trendline. Trader and analyst Rekt Capital (렉트 캐피털) said, "June is red, July is green, and August is red again," reaffirming a view that a weaker trend could resume in August after a July rebound.

The market’s next focal points are whether bitcoin can hold $60,000 and break through near $61,000. In the short term, the dollar index and U.S. stock moves are likely to keep influencing bitcoin’s direction. Whether expectations for a July rebound lead to an actual trend reversal is expected to be decided as the market tests the upper end of the range.

$BTC showing a lovely pump this NY session. Price has arrived in my POI for shorts on Bitcoin, watching the reaction closely here. I'm looking to short the exhaustion personally, as the average move of the day is almost fully hit. Remember, it's important to always await the… https://t.co/45D0XBvcLf pic.twitter.com/vc9njkpmZo