Bitcoin rose to $63,960 ahead of the weekly close, marking its highest level in about 2 weeks. On July 6 (local time), blockchain outlet Cointelegraph reported that the market is watching a break above $65,000 as a turning point for a trend reversal.

The rebound coincided with short-position liquidations. Based on Coinglass tallies, total short liquidations across the crypto market over the past 24 hours slightly exceeded $100 million. Trader Exitpump analyzed that aggressive selling emerged in the spot market and that the spot cumulative volume delta fell, while the futures cumulative volume delta was largely stagnant.

A lower support line is also cited as a key variable. Trader Killa pointed to the $60,400 to $60,900 range as Bitcoin's most important price zone. The trader said that if Bitcoin fails to hold when retesting that range, it could head back toward the lows.

Views on the medium- to long-term direction were mixed. Some market participants think the low of Bitcoin's bear market may still be ahead. Trader Roman, who has maintained a bearish stance for a long time, kept the view that a reversal toward higher prices could continue.

Macro factors also remain. U.S. stock index futures started higher after a holiday, and Nasdaq 100 futures rose 1 percent. Recent U.S. inflation and employment indicators have somewhat eased the market's hawkish expectations for Federal Reserve policy, and CME FedWatch shows the market factoring in the possibility of rates being held in both July and September. This week, minutes from the June Federal Open Market Committee meeting, purchasing managers indexes and additional employment indicators are due to be released.

There is also caution over whether stock-market strength will persist. André Dragosch (안드레 드라고슈), head of European research at Bitwise, mentioned that BCA Research's stock risk model is sending a bear-market warning signal. Still, he saw a strong chance that even if a stock-market correction and a U.S. recession materialise, a substantial part of the shock may already be reflected in Bitcoin's price. He also offered a view that Bitcoin could be relatively stronger than the Nasdaq over the coming months.

On-chain indicators signaled easing selling pressure. According to CryptoQuant, Bitcoin inflows to Binance have declined since mid-June among both whales and retail investors. Amr Taha (아므르 타하) said Binance's 30-day cumulative whale inflow has fallen by about $2.4 billion since mid-June. Retail investor inflows also dropped to $8.2 billion on July 6 from $10.02 billion on June 12.

Investor sentiment also partly recovered. The Crypto Fear & Greed Index stood at 24 on July 6, more than double early July levels, but it remained in the extreme fear zone. The market is watching whether Bitcoin breaks above $65,000, holds support in the $60,400 range, and how it reacts to U.S. macro indicators this week.