In the past month, Bitcoin’s price has experienced a significant decline, leaving many investors feeling disappointed. The cryptocurrency struggled to maintain its value, even dropping below the $60,000 mark. As we move into July, crypto analyst Zen has highlighted key liquidity pools that may play a crucial role in determining Bitcoin’s price trajectory in the coming months.
Liquidity Points and Price Analysis
Zen’s analysis reveals that Bitcoin recently broke below $60,000, specifically clearing liquidity under $60,630. This breakdown aligns with earlier price predictions and indicates a potential risk of Bitcoin falling back to $60,150 in the short term. Additionally, Zen has identified other liquidity price points that could impact Bitcoin’s momentum in July, serving both as support and resistance levels.
Notably, liquidity pools at $60,260, $59,440, $58,990, and $56,850 could contribute to significant price movements if major holders engage in large transactions at these levels. Breaking through these pools may signal trouble for investor sentiment and potentially lead to a dip to $53,000, according to Zen’s assessment.
Zen points out that Bitcoin is currently exhibiting contrasting scenarios across various timeframes. While the daily chart reflects a clear downtrend with sell-offs after every bounce, the weekly candle timeframe suggests a sideways pattern with both buying interest and accumulation on dips. Despite recent price fluctuations, the monthly candle timeframe indicates that Bitcoin’s overall uptrend remains intact.
At the time of writing, Bitcoin is trading at $60,765. Zen suggests that a weekly close above $60,622 could pave the way for a price upswing in July, while a closure below $59,600 may sustain bearish momentum. It is crucial to monitor these key levels to gauge Bitcoin’s future price movements accurately.
Historically, July has been a positive month for Bitcoin, often resulting in green candles on the charts. This trend, combined with the potential to surpass liquidity levels on the upside, could see Bitcoin primed for upward movements if bullish momentum prevails. Zen’s critical assessment provides valuable insights into the key factors influencing Bitcoin’s price outlook in the short to medium term.
While Bitcoin’s price performance remains uncertain, Zen’s analysis offers a comprehensive look at the potential scenarios for the cryptocurrency in July and beyond. By considering liquidity points, timeframes, and historical trends, investors can make more informed decisions regarding their Bitcoin holdings in the coming weeks.