Bitcoin seems to be nearing the end of its recent downward trend, as analyzed by Joao Wedson, the founder of Alphractal. This stage is marked by what is referred to as a "final selling phase," which includes a preliminary support phase where trading volume increases and price spreads begin to widen, eventually culminating in a selling climax.

During this phase, retail investors often panic and sell, but their selling is usually absorbed by institutional players. This dynamic often results in prices recovering significantly above the session's lows, effectively trapping those who have entered short positions late in the selling process. Following this phase, a period of accumulation is anticipated, with potential for a clear price bottom to emerge within the next three months.

Market Dynamics and Institutional Response

Currently, there has been a notable shift in exchange netflow, changing from a surplus of 2,724 BTC to a deficit of 907 BTC. This alteration indicates that immediate selling pressure is subsiding. The open interest in Bitcoin has increased by approximately 4.75%, reaching $21.58 billion; however, leverage levels have remained stable, avoiding any signs of overheating.

At present, Bitcoin is trading at $61,987, reflecting a 1.20% increase, which stands out against the backdrop of a stagnating market. This positive momentum can be attributed to a shift in institutional sentiment, highlighted by spot Bitcoin ETFs experiencing their first net inflows in over ten days, amounting to $221.7 million. This capital influx has catalyzed a derivatives-driven short squeeze, wiping out roughly $450 million in short positions and contributing to Bitcoin's rebound.

Resistance Levels and Market Outlook

Additionally, recent data indicating a cooling U.S. labor market has eased concerns surrounding potential rate hikes by the Federal Reserve. Looking ahead, the critical support level for Bitcoin is positioned around $60,000. Should bullish traders manage to maintain this support, Bitcoin may challenge resistance levels between $62,000 and $62,523. Conversely, failing to hold this crucial level could lead to a retest of the annual low around $58,000, particularly as the upcoming U.S. Independence Day holiday is likely to reduce market liquidity.