Crypto analyst Zen has released a critical assessment of the different scenarios you can expect for the Bitcoin price in July. Bitcoin’s price trend in June has undoubtedly disappeared many investors disappointed. This is because the cryptocurrency traded virtually on a decline during the month, even falling below $60,000 at one point. As the unfavorable price continues to play out, crypto analyst Zen has highlighted several large liquidity pools that could determine Bitcoin’s price. outcome in July and in the coming months in the fall.
Analyst Highlights Potential Bitcoin Liquidity Pools
As mentioned earlier, the recent price drop pushed Bitcoin below $60,000 earlier this week. Notably, Zen noted that this breakdown represented cleared liquidity below $60,630, which aligns with a previous price analysis. Although Bitcoin has since recovered and returned above $60,600, Zen noted that the liquidity expansion suggests there is still further risk of Bitcoin falling back to $60,150 in the near term.
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In addition, the analyst pointed to a number of other liquidity prices that can be used to evaluate momentum in July. It is interesting to note that these liquidity points ultimately serve as both support and resistance areas. In the event of a sustained decline, Zen’s analysis points to liquidity pools of $60,260, $59,440, $58,990 and $56,850. Huge trades by large holders at these points could cause significant price movements. Clearing such pools could pose problems for investor sentiment, which in turn could ultimately cause Bitcoin to fall to $53,000.
“Will it drop to ~53k at some point? That step makes sense in the time frame of the month, but it doesn’t have to happen,” Zen said. On the upside, Zen recorded liquidity pools of $61,540, $62,540, $63,260 and $64,920.
📉 #Bitcoin Daily 📈
Bitcoin cleared liquidity above the second liquidity pool at 62440. ✅ Was rejected from the VWAP VAL development quarter. Now the price will most likely move 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
Additionally, Zen pointed out that Bitcoin is currently displaying contrasting scenarios across different time frames. On the daily chart, Bitcoin is clearly in a downtrend. Each bounce is sold, indicating that the bears are in control of short-term momentum. On the other hand, the weekly candle timeframe highlights how Bitcoin is effectively stuck in a choppy sideways range at the moment.
Every rally fades, but every dip also attracts buying interest and accumulation. Finally, despite the recent price drop, Zen’s analysis shows that the uptrend remains intact in the monthly candle time frame.
What to expect from the BTC price
At the time of writing, Bitcoin is trading at $60,765. According to Zen, a week close to $60,622 will increase the chances of a Bitcoin price rise in July. On the other hand, a close below $59,600 will maintain bearish momentum.
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Bitcoin has a pretty solid seventh-month track record. More often than not, that is the case in July registered green candles for BTC. This historical trend could have Bitcoin eyeing potential rebounds, especially if the bulls are able to surge past liquidity levels on the upside.
Featured image created with Dall.E, chart from Tradingview.com