Cryptocurrency analyst Zen has published a critical assessment of the different scenarios expected for the bitcoin price in July. The performance of the bitcoin price in June has certainly left Many investors disappointedThis is because the cryptocurrency It is practically trading in decline throughout the month, even falling below $60,000 at some point. While the unfavorable price continues, crypto analyst Zen has pointed out some important liquidity pools that could determine the price of bitcoin. result in july and the next few months in autumn.
Analyst highlights potential bitcoin liquidity pools
As mentioned above, the recent price drop saw bitcoin fall below $60,000 earlier in the week. Notably, Zen noted that this breakout represented clear liquidity below $60,630, which is consistent with previous price analysis. Although bitcoin has since recovered and is back above $60,600, Zen noted that the liquidity sell-off suggests there is still additional risk of bitcoin falling back to $60,150 in the near term.
Related reading
Additionally, the analyst pointed out a number of other liquidity price points that can be used to assess momentum in July. It is interesting to note that these liquidity points ultimately serve as areas of support and resistance. In the event of a continued drop, Zen’s analysis points to liquidity pools at $60,260, $59,440, $58,990, and $56,850. Large transactions by major holders at these points could cause significant price movements. Liquidation of such pools could spell trouble for investor sentiment, which in turn could eventually cause bitcoin to drop to $53,000.
“Will it drop to ~53k at some point? That move makes sense on the month's timeframe, but it doesn't have to happen,” Zen said. On the positive side, Zen noted liquidity pools at $61,540, $62,540, $63,260, and $64,920 .
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin Diary
bitcoin removed liquidity above 2nd liquidity pool at 62440 Rejected from developing quarter VWAP VAL. Now the price will probably 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) twitter.com/WiseAnalyze/status/1805919418838339906?ref_src=twsrc%5Etfw” rel=”nofollow”>June 26, 2024
Furthermore, Zen noted that bitcoin is currently presenting contrasting scenarios on different time frames. On the daily chart, bitcoin is clearly in a downtrend. Every bounce is sold, indicating that the the bears are in control of short-term momentum. On the other hand, the weekly candle time frame highlights how bitcoin is effectively stuck in a choppy sideways range right now.
Every rally fades, but every dip also attracts buying and accumulation interest. Finally, despite the recent price drop, Zen analysis indicates that the uThe trend remains intact in the monthly candle period.
What to expect from the btc price
At the time of writing, bitcoin is trading at $60,765. According to Zen, a weekly close 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.
Related reading
bitcoin has a pretty solid track record in the seventh month. More often than not, July has bitcoin” rel=”nofollow”>green candles registered for btc. This historical trend could have bitcoin eyeing potential upside, especially if bulls manage to overcome liquidity levels on the positive side.
Featured image created with Dall.E, chart from Tradingview.com
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
