Crypto analyst Zen has released a critical assessment of various scenarios to expect for the Bitcoin price in July. Bitcoin’s price performance in June has undoubtedly left many investors upset. It is because the cryptocurrency virtually traded on a decline throughout the month, even falling below $60,000 sooner or later. While the unfavorable price continues to play out, crypto analyst Zen has flagged some major liquidity pools that would determine Bitcoin’s end result in July and the subsequent few months in autumn.
Analyst Highlights Potential Bitcoin Liquidity Pools
As mentioned earlier, the recent price decline saw Bitcoin break below $60,000 earlier within the week. Notably, Zen observed that this breakdown represented cleared liquidity under $60,630, which fits together with a former price evaluation. Although Bitcoin has since recovered and returned above $60,600, Zen noted that the liquidity clearance suggests there’s still an additional risk of Bitcoin falling back to $60,150 within the short term.
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As well as, the analyst identified numerous other liquidity price points that could be used to guage momentum in July. It’s interesting to notice that these liquidity points ultimately function each support and resistance areas. Within the case of a continued decline, Zen’s evaluation points to liquidity pools at $60,260, $59,440, $58,990, and $56,850. Huge transactions by major holders at these points could cause significant price movements. Clearing such pools could spell trouble for investor sentiment, which in turn could eventually cause Bitcoin to dip to $53,000.
“Will it dip to ~53k sooner or later? That move make sense on Month timeframe, but doesn’t should occur,” Zen said. On the upside, Zen noted liquidity pools at $61,540, $62,540, $63,260, and $64,920.
📉 #Bitcoin Every day 📈
Bitcoin cleared liquidity above second liquidity pool at 62440 ✅ Got rejected from developing quarter VWAP VAL. Now price likely will move towards 60650-60150 zone. The remainder will depend on price motion there.
Situation stays the identical and requires… pic.twitter.com/LFiiiN9fDH
— Zen (@WiseAnalyze) June 26, 2024
Moreover, Zen identified that Bitcoin is currently portraying contrasting scenarios across different timeframes. On the day by day chart, Bitcoin is clearly in a downtrend. Each bounce is getting sold into, indicating that the bears have control of the short-term momentum. However, the weekly candle timeframe highlights how Bitcoin is effectively stuck in a choppy sideways range straight away.
Each rally gets faded, but each dip also attracts buying interest and accumulation. Lastly, despite the recent price decline, Zen’s evaluation indicates that the uptrend stays intact within the monthly candle timeframe.
What To Expect From BTC Price
On the time of writing, Bitcoin is trading at $60,765. In line with Zen, every week close above $60,622 will increase the probabilities of a Bitcoin price upswing in July. However, a closure below $59,600 will maintain bearish momentum.
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Bitcoin has a fairly solid track record within the seventh month. As a rule, July has registered green candles for BTC. This historical tendency could see Bitcoin eyeing potential upswings, especially if the bulls are capable of shoot past the liquidity levels on the upside.
BTC price pushes to $61,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com