- BTC breaks $63,340 resistance, sparking renewed optimism among traders and investors.
- Fed liquidity spike draws parallels to past 38% Bitcoin surge in one week.
- Analysts eye $71,500 target as BTC resumes upward trend post-June downtrend.
On July 1, the price of BTC broke through the daily resistance at around $63,340 mark, signaling renewed optimism among traders and investors. Additionally, Fed net liquidity just experienced its largest spike in 15 months. The last time this happened, Bitcoin surged 38% in a week.
Liquidity Sparks Hope
Market data reveals that BTC price action was attempting to cement gains, coinciding with the monthly close. Despite failing to break through key resistance levels above $64,000, Bitcoin’s upward trend resumed, leaving traders cautiously optimistic.
The monthly close played a crucial role in this narrative. A breakout from the downtrend that characterized June indicated strength. Market analysts believe that the next key target for Bitcoin is around $71,500.
USD Liquidity Trends Matter
United States dollar liquidity trends have a significant impact on crypto performance. As BTC/USD moved in tandem with liquidity changes, traders closely monitored these shifts. Daan Crypto Trades highlighted the correlation, noting that both Bitcoin and stocks front-run expectations of increased USD liquidity.
Federal Reserve and BTC Price
Market analyst Cole Garner drew attention to recent Federal Reserve liquidity changes. A notable spike in net liquidity rate-of-change could potentially boost BTC price strength.
While not assuming a repeat, Garner pointed out that the last time this occurred, Bitcoin surged approximately 40% in just one week. Bollinger Bands and Volatility Technical indicators also hinted at increased volatility.
The Bollinger Bands on the weekly time frame were constricting. This pattern has been seen only a few times in Bitcoin’s history.
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