The recent price performance of Bitcoin in June has been a cause of disappointment for many investors. The cryptocurrency experienced a significant decline in its value throughout the month, at one point even falling below the $60,000 mark. This downward trend has raised concerns among investors about the future trajectory of Bitcoin’s price in the upcoming months.
Crypto analyst Zen has identified several major liquidity pools that are expected to play a crucial role in determining Bitcoin’s price outcome in July and beyond. One notable observation is the liquidity clearance that occurred when Bitcoin broke below $60,630 earlier in the week. This breakdown indicated the presence of cleared liquidity under that price point, which could potentially lead to further price drops in the short term.
Zen’s analysis also highlighted a number of other liquidity price points that could serve as both support and resistance areas for Bitcoin in July. These include liquidity pools at $60,260, $59,440, $58,990, and $56,850. The occurrence of substantial transactions by major holders at these price points could trigger significant price movements, potentially causing Bitcoin to dip as low as $53,000.
Another key point raised by Zen is the contrasting scenarios that Bitcoin is currently displaying across different timeframes. While the daily chart clearly indicates a downtrend with each bounce being sold into, the weekly candle timeframe suggests that Bitcoin is trapped in a choppy sideways range. However, the monthly candle timeframe indicates that the uptrend in Bitcoin’s price remains intact despite the recent decline.
As of the latest update, Bitcoin is trading at $60,765. Zen suggests that a weekly close above $60,622 could pave the way for a potential upswing in Bitcoin’s price in July. On the other hand, a closure below $59,600 would likely maintain bearish momentum. Historically, July has been a favorable month for Bitcoin, often recording green candles. This historical tendency, combined with the potential breakthrough of liquidity levels on the upside, could see Bitcoin experiencing significant price gains in the near future.
The critical assessment provided by Zen offers valuable insights into the various factors influencing Bitcoin’s price performance in July. It highlights the importance of major liquidity pools, support and resistance areas, as well as contrasting scenarios across different timeframes. Investors and traders would benefit from considering these factors while making informed decisions regarding their Bitcoin investments.
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