Bitcoin (BTC) saw a fresh surge following the Wall Street open on June 27, driven by an influx of US macroeconomic data.
Bitcoin liquidity is “piled up” above the spot price.
According to data from Cointelegraph Markets Pro and TradingView, the daily high on Bitstamp is $62,323.
Despite lower-than-expected initial jobless claims, US unemployment data failed to spark new concerns in cryptocurrency markets about the path of inflation.
At the time of writing, BTC/USD is up 2.3%, with traders hoping the trajectory can continue as they look to secure liquidity above spot prices.
Popular trader Daan Crypto Trades noted in part of his
“The addition of this new oversupply will make it an interesting battle in the coming weeks.”
The attached chart shows the liquidity levels of the BTC/USDT perpetual swap order book on Binance, the largest global exchange.
Fellow trader Jelle added that the market had not felt any talk of selling pressure coming from both the US and German governments in recent weeks.
“Bitcoin’s bottom range appears to be holding despite the US and German governments selling their coins and Mt. Gox finally repaying its creditors,” he suggested.
Daan Crypto Trades saw another encouraging sign as its US spot Bitcoin exchange-traded fund (ETF) saw net inflows for the second day in a row.
It had $21.4 million under management on June 26, up from $31 million the previous day, according to data from sources including UK-based investment firm Farside Investors.
BTC price decline could last for 5 months.
Axel Adler Jr, a contributor to on-chain analytics platform CryptoQuant, zoomed out and asked how long the BTC price retracement from March’s all-time high could last.
Related: Bitcoin Mayer Multiple Hits Last Low With $30,000 BTC Price.
Comparing recent price movements over the past few years, he argued that Bitcoin is mimicking behavior last seen in late 2019.
He wrote in his
Adler added that things can still change. Breaking the status quo was a matter of buying pressure of 500,000 BTC ($31 billion).
He concluded, “History is not obliged to repeat itself.”
“Active redemptions exceeding 500K BTC may result in a shutdown.”
In a separate analysis, Adler revealed that the revenue share of BTC supply has fallen by 18%, indicating an overall sentiment of “pessimism” among holders.
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