- 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.
🚨 BREAKING 🚨
FED NET LIQUIDITY JUST HAD ITS
BIGGEST SPIKE IN 15 MONTHS.THE LAST TIME IT HAPPENED,
BITCOIN PUMPED 38% IN A WEEK. pic.twitter.com/11ceIc3Ef2— Ash Crypto (@Ashcryptoreal) July 2, 2024
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.
