In the month of June, Bitcoin experienced a disappointing price performance, much to the dismay of many investors. The cryptocurrency dipped below $60,000 at certain points, showcasing a consistent downward trend throughout the month. Zen, a crypto analyst, has highlighted some crucial liquidity pools that may play a significant role in determining Bitcoin’s fate in July and the following autumn months.
Zen’s analysis points towards several liquidity price levels that could act as both support and resistance areas for Bitcoin. These levels include $60,260, $59,440, $58,990, and $56,850, where major transactions by large holders could trigger significant price fluctuations. Clearing these liquidity pools might lead to negative investor sentiment and could potentially push Bitcoin’s price down to $53,000.
On the upside, Zen identified liquidity pools at $61,540, $62,540, $63,260, and $64,920, indicating possible areas of resistance for Bitcoin. However, the movement of the price ultimately depends on the actions of major holders and market dynamics.
Zen highlighted the contrasting scenarios that Bitcoin is currently exhibiting across various timeframes. While the daily chart shows a clear downtrend with bears controlling short-term momentum, the weekly candle timeframe suggests a sideways range with buying interest and accumulation on dips. Interestingly, the monthly candle timeframe indicates that the uptrend remains intact despite the recent price decline.
As of the time of writing, Bitcoin is trading at $60,765. Zen believes that a weekly close above $60,622 could pave the way for a price upswing in July. Conversely, a closure below $59,600 could sustain bearish momentum for Bitcoin. Historically, July has been a favorable month for Bitcoin, often seeing green candles on the price chart. This historical trend could potentially lead to upward movements for Bitcoin, especially if the bulls manage to surpass the key liquidity levels on the upside.
Zen’s critical assessment of Bitcoin’s price scenarios for July sheds light on the important role that liquidity pools play in determining price movements. While the short-term outlook may be influenced by bearish momentum, the overall uptrend in the monthly timeframe provides a glimmer of hope for Bitcoin investors. It will be interesting to see how the market dynamics unfold in the coming month, especially in light of the historical performance of Bitcoin in July.