Bitcoin (BTC) was focused on $63,000 on July 2, amid macro liquidity changes.
Bitcoin Analyst on Global Liquidity: “You Like to See It”
According to data from Cointelegraph Markets Pro and TradingView, the BTC price moved to solidify its bullish momentum and hit a monthly close.
Despite the overall failure to break above key resistance levels above $64,000, Bitcoin traders have been rekindling their optimism as July begins.
“Bitcoin resumes its uptrend,” popular trader and analyst Rekt Capital summarized in one of several news posts on X (formerly Twitter).
Rekt Capital highlighted the monthly close as a key sign of strength, showing a chart that broke out of June’s downtrend.
“The goal? To build a foundation that can jump into the Range High area over time to ~$71,500,” he explained.
Meanwhile, fellow trader Daan Crypto Trades focused on the US dollar liquidity trend, which, as Cointelegraph reported, is crucial for crypto market performance, and expectations for a positive rebound have increased over the past month.
“During this range, BTC prices have mostly moved in line with USD liquidity,” he argued on the day, along with comparison charts.
“We saw a nice turnaround from a big decline towards the end of the quarter and into the new quarter. Liquidity has barely moved this year, but both BTC and equities are outpacing the future expansion of USD liquidity.”
Market analyst Cole Garner went a step further, saying that recent changes in liquidity from the Federal Reserve could have a real impact on BTC price strength in the short term.
He observed “the largest spike in the Fed’s net liquidity ratio in 15 months.”
“The last time that happened, Bitcoin went up ~40% in a week. I don’t think that’s going to happen again, but it’s nice to see it happen.”
Bollinger Bands Call for BTC Price Breakout
Technical indicator data also points to increased volatility for Bitcoin.
Related: Was $60K a Bear Trap? 5 Things to Know About Bitcoin This Week
On a weekly basis, Bollinger Bands were limited to levels seen only a few times in Bitcoin history, a typical precursor to a major crash.
This phenomenon was observed by renowned analyst Matthew Hyland in X.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.