The month of June witnessed a rather disappointing performance by Bitcoin, as the cryptocurrency traded on a decline, even plunging below the $60,000 mark at certain points. Many investors were left disheartened by this unfavorable price action.
Crypto analyst Zen has identified major liquidity pools that could potentially impact Bitcoin’s price trajectory not only in July but also in the coming months leading up to autumn. The breakdown below $60,000 earlier in the week resulted in the clearance of liquidity under $60,630, signaling potential risks for Bitcoin in the short term.
Support and Resistance Areas to Watch
Zen highlighted several liquidity price points that could serve as crucial support and resistance levels in July. These include $60,260, $59,440, $58,990, and $56,850. Clearing these pools could lead to significant price movements, potentially causing Bitcoin to dip to $53,000.
Contrasting Timeframe Scenarios
Bitcoin is currently displaying contrasting scenarios across different timeframes. While the daily chart indicates a clear downtrend with each bounce being sold into, the weekly candle timeframe suggests a choppy sideways range. On the other hand, the monthly candle timeframe still portrays an intact uptrend.
As of the latest update, Bitcoin is trading at $60,765. Zen suggests that a weekly close above $60,622 could pave the way for a price upswing in July, while a closure below $59,600 may sustain bearish momentum. Historically, July has often seen green candles for Bitcoin, hinting at potential upswings if the bulls can overcome the liquidity levels on the upside.
Zen’s critical assessment of Bitcoin’s future price movements highlights the importance of liquidity pools, support and resistance levels, as well as the contrasting scenarios across different timeframes. The cryptocurrency market remains unpredictable, and investors should proceed with caution while keeping a close eye on key indicators for potential price movements in the coming months.
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