Bitcoin Eyes $63,000 Amid Macro Liquidity Changes and Predicted Volatility Surge
Summary:
Bitcoin (BTC) aims for $63,000 target on July 2. In spite of challenges with key resistance levels above $64,000, renewed optimism emerges among Bitcoin investors in July. Analysts attribute trends in USD liquidity as crucial for the cryptocurrency's market performance. Meanwhile, technical indicators predict an upcoming increase in Bitcoin-related volatility, hinting at major breakouts.
On July 2, Bitcoin (BTC) set its sights on a $63,000 target as the focus shifted towards alterations in macro liquidity. Data from Cointelegraph Markets Pro and TradingView revealed Bitcoin's price action struggling to solidify gains which coincided with the end of the month. Despite not successfully overcoming the key resistance markers above $64,000, Bitcoin investors found renewed hope at the start of July.
Sharing their thoughts, Rekt Capital, a well-known trader and analyst, stated in a news post that Bitcoin had relaunched its upward stride on X (previously known as Twitter). Acknowledging the monthly close, Rekt Capital highlighted it as a principal indicator of strength and pointed to a chart showing a rally upwards from the downtrend that defined June.
His prediction is that a solid base will be constructed, enabling Bitcoin to eventually soar to the range high vicinity of approximately $71,500.
Concurrently, trader Daan Crypto Trades underlined the importance of USD liquidity trends, which play a vital role in determining crypto market performance. Noting their spectrum, he maintained that Bitcoin's price has been closely aligned with USD Liquidity through this range, signifying a high correlation between the two.
Market analyst Cole Garner, on his part, proposed that the recent alterations in Federal Reserve liquidity could have a direct short-term effect on the might of Bitcoin's prices. Garner pointed out the biggest Fed Net Liquidity rate-of-change surge in 15 months, and highlighted that the last time this occurred, Bitcoin appreciated by around 40% in a single week.
From a technical analytics standpoint, there are hints at an impending increase in Bitcoin-related volatility. On weekly timeframes, Bollinger Bands are compressing to levels seen only seldom in Bitcoin's history, usually a telltale sign of significant breakout potential. This phenomenon was noticed by famous analyst Matthew Hyland on X.
This write-up should not be seen as investment advice or recommendation. Making any investment or trading move carries risk and readers must carry out their own research before deciding.
Published At
7/2/2024 5:11:28 PM
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