Analyst Identifies Bitcoin Liquidity Pools You Should Be Aware of Entering in July

Crypto analyst Zen has released a critical assessment of the different scenarios expected for the price of Bitcoin in July. Bitcoin’s price performance in June undoubtedly left many investors disappointed. This is because cryptocurrency practically traded in decline throughout the month, even dipping below $60,000 at some point. As the unfavorable price action continues to develop, cryptocurrency analyst Zen has flagged some large liquidity pools that could determine Bitcoin’s result in July and in the coming months in the fall.

Analyst highlights potential Bitcoin liquidity pools

As mentioned earlier, the recent price decline saw Bitcoin fall below $60,000 at the start of the week. Notably, Zen noted that this breakdown represented net liquidity below $60,630, which is in line with previous price analysis. Although Bitcoin has recovered and returned above $60,600, Zen noted that the liquidity clearing suggests there is still additional risk of Bitcoin falling back to $60,150 in the near term.

Additionally, the analyst pointed out a number of other liquidity prices that can be used to assess the dynamics in July. It is interesting to note that these liquidity points ultimately serve as areas of support and resistance. In the event of a continued decline, Zen’s analysis points to liquidity pools at $60,260, $59,440, $58,990, and $56,850. Large transactions by large holders at these points could cause significant price movements. Compensation from such pools could spell trouble for investor sentiment, which in turn could eventually cause Bitcoin to fall to $53,000.

“Will it drop to ~53k at some point? This move makes sense for the time of the month, but it doesn’t need to happen,” said Zen. On the upside, Zen noted liquidity pools at $61,540, $62,540, $63,260, and $64,920.

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Furthermore, Zen highlighted that Bitcoin is portraying contrasting scenarios in different time frames. On the daily chart, Bitcoin is clearly in a downtrend. Every bounce is being sold, indicating that the the bears have control short-term momentum. On the other hand, the candle’s weekly time frame highlights how Bitcoin is effectively stuck in an unstable sideways range right now.

Every rally fades, but every dip also attracts buying and accumulation interest. Finally, despite the recent price decline, Zen’s analysis indicates that the marketThe trend remains intact in the monthly candle period.

What to expect from BTC price

At the time of writing, Bitcoin is trading at $60,765. According to Zen, a close week above $60,622 will increase the chances of a Bitcoin price rally in July. On the other hand, a close below $59,600 will maintain the bearish momentum.

Bitcoin has a pretty solid track record in the seventh month. Most of the time, July registered green candles for BTC. This historical trend could have Bitcoin eyeing potential upside, especially if bulls manage to break through liquidity levels on the upside.

BTC price rises to $61,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

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