Crypto analyst Zen has released a critical assessment of different scenarios to expect for the Bitcoin price in July. Bitcoin’s price performance in June has undoubtedly left many investors disappointed. This is because the cryptocurrency virtually traded on a decline throughout the month, even falling below $60,000 at some point. While the unfavorable price continues to play out, crypto analyst Zen has flagged some major liquidity pools that could determine Bitcoin’s outcome in July and the next few months in autumn.
Analyst Highlights Potential Bitcoin Liquidity Pools
As mentioned earlier, the recent price decline saw Bitcoin break below $60,000 earlier in the week. Notably, Zen observed that this breakdown represented cleared liquidity under $60,630, which goes along with a former price analysis. Although Bitcoin has since recovered and returned above $60,600, Zen noted that the liquidity clearance suggests there’s still a further risk of Bitcoin falling back to $60,150 in the short term.
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In addition, the analyst pointed out a number of other liquidity price points that may be used to evaluate momentum in July. It’s interesting to note that these liquidity points ultimately serve as both support and resistance areas. In the case of a continued decline, Zen’s analysis points to liquidity pools at $60,260, $59,440, $58,990, and $56,850. Huge transactions by major holders at these points could cause significant price movements. Clearing such pools could spell trouble for investor sentiment, which in turn could eventually cause Bitcoin to dip to $53,000.
“Will it dip to ~53k at some point? That move make sense on Month timeframe, but 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 cleared liquidity above second liquidity pool at 62440 ✅ Got rejected from developing quarter VWAP VAL. Now price most probably will move towards 60650-60150 zone. The rest depends on price action there.
Situation remains the same and requires… pic.twitter.com/LFiiiN9fDH
— Zen (@WiseAnalyze) June 26, 2024
Furthermore, Zen pointed out that Bitcoin is currently portraying contrasting scenarios across different timeframes. On the daily chart, Bitcoin is clearly in a downtrend. Each bounce is getting sold into, indicating that the bears have control of the short-term momentum. On the other hand, the weekly candle timeframe highlights how Bitcoin is effectively stuck in a choppy sideways range right now.
Each rally gets faded, but each dip also attracts buying interest and accumulation. Lastly, despite the recent price decline, Zen’s analysis indicates that the uptrend remains intact in the monthly candle timeframe.
What To Expect From BTC Price
At the time of writing, Bitcoin is trading at $60,765. According to Zen, a week close above $60,622 will increase the chances of a Bitcoin price upswing in July. On the other hand, a closure below $59,600 will maintain bearish momentum.
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Bitcoin has a pretty solid track record in the seventh month. More often than not, July has registered green candles for BTC. This historical tendency could see Bitcoin eyeing potential upswings, especially if the bulls are able to shoot past the liquidity levels on the upside.
Featured image created with Dall.E, chart from Tradingview.com
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