#Sunday Market - July 5, 2026

The crypto market is showing signs of life as we head into the weekend. After a brutal June that marked Bitcoin's worst month since 2022, the market has staged a modest but meaningful recovery. Let us break down what is happening across the major assets and what to watch as we move into the new week.

#Bitcoin Finds Footing Above $61K**

Bitcoin has managed to hold above the $61,000 level, a significant psychological barrier that was tested multiple times in recent weeks. The relief rally comes after a softer-than-expected U.S. jobs report cooled expectations for aggressive Federal Reserve tightening, reviving appetite for risk assets across the board.

Perhaps more encouraging than the price action itself is the ETF flow data. U.S. spot Bitcoin ETFs snapped a painful 10-day outflow streak with approximately $222 million in inflows on Thursday. This marks the first positive flow in over a week and suggests that institutional dip buyers are beginning to return after roughly $2.4 billion in redemptions throughout June.

#Ethereum and Solana Lead the Charge**

While Bitcoin has been consolidating, Ethereum and Solana have been the standout performers. Ether has gained nearly 10% on the week, trading around $1,700-$1,750, while Solana has surged an impressive 18.6%, the strongest weekly performance among major assets.

The rally has been driven in part by a sharp short squeeze that liquidated over $281 million in bearish crypto bets in just 24 hours, with Ethereum accounting for the largest share of wiped-out positions. This forced covering has added fuel to the upward momentum, particularly in the altcoin space.

**Market Structure Improving**

On-chain and technical indicators are flashing early signs of stabilization. The stablecoin dominance chart is showing a potential bearish reversal signal, which historically has preceded capital rotation back into Bitcoin and altcoins. Meanwhile, RSI is putting in higher lows while on-balance volume is pushing above its moving average for the first time since late May.

Ethereum has already moved back into the daily TBO Cloud for the first time since mid-May, while Bitcoin is testing key resistance near the $62,000 level. These are not definitive trend reversals yet, but they represent a meaningful improvement from the relentless selling pressure of June.

**DEX Market Activity**

On the decentralized exchange front, we are seeing significant volatility in newer tokens, with some Base chain assets posting extraordinary 24-hour gains. While these moves are often driven by low liquidity and speculative interest, they do indicate that risk appetite is returning to certain corners of the market.

**What to Watch This Week**

The coming week will be critical for determining whether this is a genuine trend reversal or merely a relief bounce within a broader downtrend. Key levels to monitor include the $62,000-$63,000 zone for Bitcoin, which has acted as resistance on multiple occasions, and whether Ethereum can sustain its position above the $1,700 level.

The macro backdrop remains supportive for now, with cooling inflation expectations and a more dovish Fed narrative providing tailwinds for risk assets. However, the market remains vulnerable to any surprises in the economic data or shifts in central bank messaging.

For traders, the current environment calls for patience. The forced liquidations have created some opportunities, but the broader trend has not yet fully reversed. Those looking to accumulate should consider dollar-cost averaging rather than chasing the move, as volatility is likely to remain elevated in the near term.

The crypto market has a habit of moving when least expected. After months of pain, the setup is beginning to look more constructive, but confirmation will require sustained follow-through above these key technical levels.

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