Bitcoin (BTC) is making lower highs as sellers thwart attempts to break its all-time high, and traders are now paying attention.
BTC Price Drifting “Into Nowhere”
According to data from Cointelegraph Markets Pro and TradingView, the ceiling for the July BTC price rebound will most definitely be set around $70,000.
Bitcoin bulls may be hoping for nothing more than a rematch of March’s all-time high of $73,800, but sellers have held the upper hand since then.
Now traders are watching BTC/USD decline as this phenomenon occurs multiple times, each time maintaining a 5-month trading range.
For popular trader Daan Crypto Trades, this tells you how much liquidity there is above $70,000.
“Bitcoin has a few lower highs close to each other. There is likely a lot of liquidity above these levels in the form of stop loss/liquidation levels for short positions,” he summarized in part of a July 30 X post.
Like others, Daan Crypto Trades suggested that $72,000 is the threshold that bulls need to cross, and also noted that buying liquidity is below the spot price. As Cointelegraph reported, the analysis suggests that this will come into play if BTC/USD falls below $64,000.
“It’s also an all-time high, so if it hits its all-time high on June 7, it could shatter everything,” the post predicted.
“The downside is we got a couple of wicks between $63,000 and $63,500, and there was probably a long stop below that. Basically, there’s almost nothing here.”
Popular trader and analyst Josh Razer also noted the lower high cycle.
He echoed Daan Crypto Trades’ sentiments, telling X followers that he was “not interested” in trading in the current setup unless there was a clear breakthrough.
“Not much has changed for BTC since the March high,” he concluded on the daily chart.
“If the closing price gets higher every day, I’ll be interested again.”
Will the cooler weather continue until Bitcoin hits new all-time highs?
Many were already questioning the magnitude of Bitcoin’s recent brief surge to $70,000.
Related: US National Debt Tops $35 Trillion — 5 Things to Know About Bitcoin This Week
In the case of the pseudonymous trader Horse on X, the longevity of the trade was almost immediately called into question due to the lack of interest from genuine spot buyers.
“We are finally out of this range, but it’s not about price, it’s about OI,” part of the X post explained, referring to outstanding commitments.
Horse argued that opening long positions near the weekend highs would be “bad,” saying the current situation contrasts with a long-term bullish setup for cryptocurrencies as a whole.
“Market depth has changed negatively across the board, but this alone is not enough to take action, as we have seen many uptrends in negative book delta (buy/sell depth in the 0-5%, 5-10% range),” he concluded of the order book data.
“This could mean a more rusty and jarring ride before you get to higher ground.”
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.