The cryptocurrency market has been experiencing a turbulent period, with Bitcoin’s price performance in June leaving many investors disappointed. The recent decline in Bitcoin’s price has raised concerns among traders and analysts about what to expect in July and the coming months. Crypto analyst Zen has provided a critical assessment of different scenarios that could impact Bitcoin’s price movement in July.
Zen has identified major liquidity pools that could play a significant role in determining Bitcoin’s price outcome in July. The recent breakdown below $60,000 and the subsequent recovery above $60,600 have highlighted key liquidity points to watch. These liquidity points, both support and resistance areas, include $60,260, $59,440, $58,990, $56,850 as potential downside targets and $61,540, $62,540, $63,260, and $64,920 as upside targets. Transactions by major holders at these liquidity pools could lead to significant price movements and impact investor sentiment.
Zen has pointed out that Bitcoin is currently showing contrasting scenarios across different timeframes. While the daily chart indicates a clear downtrend with each bounce being sold into, signaling bearish momentum in the short term, the weekly candle timeframe suggests that Bitcoin is stuck in a choppy sideways range. Each rally is met with selling pressure, but each dip attracts buying interest and accumulation. In contrast, the monthly candle timeframe indicates that the uptrend remains intact despite the recent price decline.
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 maintain bearish momentum. Zen also notes that historically, July has been a positive month for Bitcoin, often registering green candles. This historical tendency, coupled with the potential for bullish momentum to surpass key liquidity levels, could see Bitcoin eyeing potential upswings in the coming month.
The critical assessment provided by Zen offers valuable insights into the potential scenarios for Bitcoin’s price movement in July. With key liquidity points identified and contrasting scenarios across different timeframes analyzed, traders and investors can better navigate the volatile cryptocurrency market in the coming month. By staying informed and proactive, market participants can position themselves strategically to capitalize on opportunities and mitigate risks in the ever-evolving crypto landscape.