Bitcoin circles $63K as liquidity sparks hopes of 40% BTC price gains

(Coin Telegraph)-03/07/2024

Data from Cointelegraph Markets Pro and TradingView showed BTC price action attempting to cement gains, which accompanied the monthly close.

Despite an overall failure to tackle key resistance levels above $64,000, Bitcoin traders had renewed cause for optimism as July got underway.

“Bitcoin has resumed 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, with a chart showing a breakout from the downtrend that characterized June.

“The goal? To build a foundation from which it will be able to springboard to the Range High area at ~$71500 over time,” he explained.

Fellow trader Daan Crypto Trades, meanwhile, placed emphasis on United States dollar liquidity trends. As Cointelegraph reported, these are crucial for crypto market performance, with expectations of positive repercussions increasing last month.

“During this range, the BTC price has moved mostly in line with USD Liquidity,” he asserted on the day alongside a comparative chart.

“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 went further, suggesting that recent Federal Reserve liquidity changes could have a tangible short-term impact on BTC price strength.

“Biggest Fed Net Liquidity rate-of-change spike in 15 months,” he observed.

“Last time that happened, bitcoin rose ~40% in one week. Not assuming a repeat, but you love to see it.”

Bollinger Bands demand BTC price breakout

Technical indicator data likewise teased signs of increased volatility hitting Bitcoin next.

On weekly timeframes, Bollinger Bands were constricting to levels only seen a handful of times in Bitcoin’s history — a classic precursor to major breakouts.

The phenomenon was observed on X by popular analyst Matthew Hyland.