In a recent analysis provided by crypto analyst Zen, different scenarios for the Bitcoin price in July were outlined. The disappointing performance of Bitcoin in June, where the cryptocurrency saw a noticeable decline in price, has left many investors concerned. Despite the current unfavorable market conditions, Zen has identified key liquidity pools that could impact Bitcoin’s price trajectory for the upcoming month of July and potentially in the autumn months ahead.
Zen highlighted the significance of liquidity pools in determining Bitcoin’s movement. The recent breakdown below $60,000 and subsequent recovery above $60,600 indicated cleared liquidity below $60,630. This liquidity clearance suggests a potential risk of Bitcoin dropping back to $60,150 in the short term. Additionally, Zen identified other liquidity price points such as $60,260, $59,440, $58,990, and $56,850, which could serve as both support and resistance areas. Massive transactions by major holders at these points have the potential to trigger significant price fluctuations, possibly leading to a dip to $53,000 if such pools are cleared.
Zen observed that Bitcoin is currently displaying contrasting scenarios across different timeframes. While the daily chart indicates a clear downtrend with each bounce being sold into, signaling bearish momentum in the short term, the weekly candle timeframe suggests Bitcoin is stuck in a choppy sideways range. Each rally is met with selling pressure, but every dip attracts buying interest and accumulation. Despite the recent price decline, Zen’s analysis indicates that the monthly candle timeframe shows the uptrend in Bitcoin remains intact.
As of the time of writing, Bitcoin is trading at $60,765. Zen suggested that a weekly close above $60,622 could pave the way for a potential upswing in Bitcoin’s price for the month of July. On the contrary, a closure below $59,600 would likely sustain the bearish momentum. Historically, July has been a positive month for Bitcoin, often recording green candles. This historical trend, coupled with the possibility of surpassing liquidity levels on the upside, could lead to Bitcoin aiming for potential upward movements in the coming month.
The critical assessment provided by Zen offers valuable insights into the various factors influencing Bitcoin’s price trajectory in July. The identification of key liquidity pools, analysis of contrasting scenarios across different timeframes, and consideration of historical trends all contribute to a comprehensive understanding of the potential outcomes for Bitcoin in the near future. Investors and traders alike can benefit from carefully evaluating these scenarios and adjusting their strategies accordingly to navigate the volatile crypto market effectively.
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