Crypto analyst Zen has released a critical assessment of the different scenarios expected for Bitcoin’s price in July. Bitcoin’s price performance in June has undoubtedly left many investors disappointed. This is because cryptocurrency practically traded in decline throughout the month, even falling below US$60,000 at some point. Although unfavorable pricing continues to occur, crypto analyst Zen has flagged some large liquidity pools that could determine Bitcoin’s evolution. result in July and in the coming months in the fall.
Analyst Highlights Potential Bitcoin Liquidity Pools
As mentioned earlier, the recent price drop saw Bitcoin break below $60,000 at the start of the week. Notably, Zen noted that this break represented liquidity netting below $60,630, which is in line with previous price analysis. Although Bitcoin has recovered and returned above $60,600, Zen noted that the release of liquidity suggests there is still additional risk of Bitcoin falling to $60,150 in the near term.
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Furthermore, the analyst pointed out a number of other liquidity pools that can be used to gauge the dynamics in July. Interestingly, these liquidity points ultimately serve as support and resistance areas. In the event of a continued decline, Zen’s analysis points to liquidity pools at $60,260, $59,440, $58,990, and $56,850. Large transactions by large holders at these points could cause significant price movements. Clearing of such pools could spell trouble for investor sentiment, which in turn could eventually cause Bitcoin to fall to $53,000.
“Will it drop to ~53k at some point? This move makes sense in the Month-to-Month timeframe, but it doesn’t have to happen,” Zen said. On the upside, Zen noted liquidity pools at $61,540, $62,540, $63,260, and $64,920.
📉 #Bitcoin Daily 📈
Bitcoin released liquidity above the second liquidity pool at 62440 ✅ It was rejected in the developing quarter VWAP VAL. Now the price will probably go towards the 60650-60150 zone. The rest depends on the price action there.
The situation remains the same and requires… pic.twitter.com/LFiiiN9fDH
-Zen (@WiseAnalyze) June 26, 2024
Furthermore, Zen highlighted that Bitcoin is currently portraying contrasting scenarios on different time frames. On the daily chart, Bitcoin is clearly in a downtrend. Each rejection is being sold, indicating that the bears have control short-term momentum. On the other hand, the weekly candlestick timeframe highlights how Bitcoin is effectively stuck in an unstable sideways range at the moment.
Every rally fades, but every dip also attracts buying and accumulation interest. Finally, despite the recent price decline, Zen’s analysis indicates that theThe trend remains intact in the monthly candle period.
What to expect from BTC price
At the time of writing, Bitcoin is trading at $60,765. According to Zen, a close week above $60,622 will increase the chances of a Bitcoin price rally in July. On the other hand, a close below $59,600 will maintain the bearish momentum.
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Bitcoin has a pretty solid track record in the seventh month. Most often July registered green candles for BTC. This historical trend could have Bitcoin eyeing potential upside, especially if bulls manage to break through liquidity levels on the upside.
Featured image created with Dall.E, chart from Tradingview.com