Bitcoin’s price performance in June has raised concerns among investors as the cryptocurrency experienced a significant decline, dropping below $60,000 at one point. Crypto analyst Zen has provided insights into possible scenarios for Bitcoin’s price movement in July and the coming months, focusing on liquidity pools that could influence its trajectory.
Zen highlighted the significance of liquidity pools in determining Bitcoin’s price movement. The recent breakdown below $60,000 and subsequent recovery above $60,600 indicated cleared liquidity under $60,630. According to Zen, there is still a risk of Bitcoin revisiting $60,150 in the short term. The analyst identified other liquidity price points at $60,260, $59,440, $58,990, and $56,850, which could act as both support and resistance areas. Transactions by major holders at these levels may impact price movements, potentially causing Bitcoin to dip to $53,000.
Zen pointed out the contrasting scenarios across different timeframes for Bitcoin. While the daily chart reflects a clear downtrend with each bounce being sold into, the weekly candle timeframe suggests Bitcoin is stuck in a choppy sideways range. Despite the recent price decline, Zen’s analysis indicates that the uptrend remains intact in the monthly candle timeframe, offering a more optimistic outlook for the long term.
At the time of the analysis, Bitcoin was trading at $60,765. Zen emphasized that a weekly close above $60,622 could indicate a potential price upswing in July, while a closure below $59,600 may sustain bearish momentum. Historically, July has often seen positive price movements for Bitcoin, with green candles dominating the month. If bulls can overcome the liquidity levels on the upside, Bitcoin may experience significant gains in the coming weeks.
Zen’s critical assessment of Bitcoin’s price scenarios in July provides valuable insights for investors and traders. By analyzing liquidity pools, contrasting timeframes, and historical price trends, Zen offers a comprehensive view of potential price movements for Bitcoin in the near future. While short-term risks remain, the long-term uptrend signals optimism for Bitcoin’s price trajectory.
Overall, Zen’s analysis serves as a valuable resource for market participants seeking to navigate the volatility and uncertainty in the cryptocurrency market, guiding them towards informed decision-making and risk management strategies.
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