The performance of Bitcoin in June has left many investors disappointed as the cryptocurrency has been trading on a decline, falling below $60,000 at times. Crypto analyst Zen has provided a critical assessment of various liquidity pools that could impact Bitcoin’s price in July and the following months.
Zen observed that the recent breakdown below $60,000 represented cleared liquidity under $60,630, indicating a risk of Bitcoin dropping back to $60,150 in the short term. The analyst also highlighted liquidity price points at $60,260, $59,440, $58,990, and $56,850, which could serve as support or resistance areas. Clearing these pools could lead to significant price movements, potentially causing Bitcoin to dip to $53,000.
On the daily chart, Bitcoin is in a clear downtrend, with each bounce being sold into, signaling bearish short-term momentum. In contrast, the weekly candle timeframe shows Bitcoin stuck in a choppy sideways range, with rallies being faded but dips attracting buying interest. Despite the recent decline, Zen’s analysis indicates that the uptrend remains intact in the monthly candle timeframe.
Current Price and Future Outlook
At the time of writing, Bitcoin is trading at $60,765. Zen suggests that a weekly close above $60,622 could increase the chances of a price upswing in July, while a closure below $59,600 would likely maintain bearish momentum. Historically, July has seen green candles for Bitcoin more often than not, indicating the potential for upswings if the bulls can surpass the liquidity levels on the upside.
Zen’s critical assessment of Bitcoin’s price scenarios for July highlights the importance of liquidity pools in determining potential price movements. Investors should closely monitor these levels to gauge market sentiment and make informed decisions regarding their Bitcoin holdings. Despite the current downtrend, historical trends suggest that July could bring positive price action for Bitcoin if certain key levels are breached by the bulls.
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