July 2nd saw Bitcoin (BTC) hover around $63,000 as the market shifted its focus to global liquidity changes. This renewed attention has sparked a wave of optimism among traders, with some analysts predicting significant price movements on the horizon.
A Bullish Monthly Close and Breakout Signal
Data from Cointelegraph Markets Pro and TradingView reveals a strengthening Bitcoin price action, particularly in light of the positive monthly close. While the cryptocurrency hasn’t yet surpassed key resistance levels above $64,000, popular analyst Rekt Capital sees this as a temporary hurdle.
Rekt Capital, highlighting the monthly close as a bullish sign, shared a chart on X (formerly Twitter) indicating a breakout from June’s downtrend. He projects Bitcoin to “build a foundation” for a potential surge towards the ~$71,500 range over time.
Dollar Liquidity and Its Impact on Crypto
Another crucial factor influencing Bitcoin’s trajectory is the trend in US dollar liquidity, as emphasized by Daan Crypto Trades. As reported by Cointelegraph, these trends significantly impact the crypto market, and positive developments were anticipated last month.
Daan Crypto Trades, pointing to a comparative chart, stated, “During this range, the BTC price has moved mostly in line with USD Liquidity… We just saw a big decrease into a nice move up during this end of the quarter into the new quarter. Liquidity has moved little this year but both BTC & Stocks have been front running a future expansion of USD liquidity.”
Market analyst Cole Garner delves deeper, suggesting that recent Federal Reserve liquidity adjustments might have a tangible short-term influence on Bitcoin’s price strength.
Garner observed, “Biggest Fed Net Liquidity rate-of-change spike in 15 months… Last time that happened, bitcoin rose ~40% in one week. Not assuming a repeat, but you love to see it.”
Also Read: Bitcoin Miner Bloodbath: 90% Fee Collapse Triggers Forced Selling, Price Correction Looms
Technical Indicators Hint at Increased Volatility
Technical indicator data also hints at the possibility of heightened volatility for Bitcoin in the near future. Weekly timeframes reveal Bollinger Bands constricting to levels historically linked to major breakouts in Bitcoin’s price, as noted by analyst Matthew Hyland on X.
With the confluence of a positive monthly close, potential liquidity injections, and tightening technical indicators, Bitcoin appears poised for a significant move. Whether it’s a surge or a correction, one thing seems certain: volatility is likely on the horizon for the leading cryptocurrency.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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