Analyst Identifies Bitcoin Liquidity Pools to Watch Out for in July
Crypto analyst Zen has released a critical assessment of the various scenarios you can expect for Bitcoin’s price in July. Bitcoin price performance in June is undoubtedly gone many investors were disappointed. This is because it is a cryptocurrency probably sold at a discount throughout the month, it drops below $60,000 at times. While the negative price continues to be seen, crypto analyst Zen has flagged large pools of liquidity that could determine the value of Bitcoin. result in July and the next few months in the fall.
Analyst Highlights Potential Pools of Bitcoin Liquidity
As mentioned earlier, the recent price drop saw Bitcoin break below $60,000 earlier in the week. Notably, Zen noted that this drop represents a premium of less than $60,630, which is consistent with the previous price analysis. While Bitcoin has since recovered and is back above $60,600, Zen noted that the liquidity crunch suggests there is still more risk for Bitcoin to return to $60,150 in the short term.
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In addition, the analyst revealed a number of other currency prices that could be used to test momentum in July. It is interesting to note that these liquidity points ultimately act as support and resistance points. In the case of further declines, Zen analysis points to liquidity pools at $60,260, $59,440, $58,990, and $56,850. Large transactions by major holders at these points can cause significant price movements. Removing such pools could cause a problem from an investor’s perspective, which could cause Bitcoin to sink to $53,000.
“Will it dip to ~53k sometime? That move makes sense at the time of the Moon, but it shouldn’t happen,” said Zen. On the other hand, Zen marked spending pools at $61,540, $62,540, $63,260, and $64,920.
📉 #Bitcoin Every day 📈
Bitcoin removed more than the second pool of liquidity at 62440 ✅ Rejected in VWAP VAL quarterly improvement. Now the price is likely to move to the 60650-60150 area. The rest depends on the price action there.
The situation is still the same and we need… pic.twitter.com/LFiiiN9fDH
— Zen (@WiseAnalyze) June 26, 2024
In addition, Zen pointed out that Bitcoin is currently showing contradictory conditions between different periods. On the daily chart, Bitcoin is clearly in a downtrend. Each bounce is sold on it, which shows that the bears became stronger of short-term pressure. On the other hand, the weekly candle time period highlights how Bitcoin is currently stuck in a choppy sideways range.
Each rally diminishes, but each dip also attracts buying and accumulating interest. Finally, despite the recent price drop, Zen analysis shows that iuThe ptrend remains the same in the monthly candle time period.
What to Expect from BTC Prices
At the time of writing, Bitcoin is trading at $60,765. According to Zen, a week that closes above $60,622 will increase the chances of an increase in the price of Bitcoin in July. On the other hand, a close below $59,600 will maintain bearish momentum.
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Bitcoin has a strong record for the seventh month. More than that, July has been green candles are registered of BTC. This historical trend could see Bitcoin looking for a potential upside, especially if the bulls are able to shoot past the currency’s upside levels.
The featured image was created with Dall.E, a chart from Tradingview.com
