Bitcoin enthusiasts are anticipating a stronger price rebound as liquidity accumulates between the current spot price and $70,000. Following the June 27 Wall Street opening and positive U.S. macroeconomic data, Bitcoin (BTC) reached new highs, peaking at $62,323 on Bitstamp. Despite better-than-expected jobless claims, U.S. unemployment data did not raise significant inflation concerns in the crypto markets.
Source: TradingView
BTC/USD saw a 2.3% increase for the day, with traders aiming to sustain this upward momentum to access the liquidity above the current price level. Popular trader Daan Crypto Trades highlighted that most of the liquidity is now positioned above $59,000, marking a crucial battle over the coming weeks as new supply overhang emerges. An accompanying chart illustrated BTC/USDT perpetual swap order book liquidity on Binance.
Source: Daan Crypto Trades/X
Another trader, Jelle, noted that recent sell pressures from U.S. and German government actions had minimal impact on the market. Daan Crypto Trades also pointed out a positive trend with consecutive net inflows to U.S. spot Bitcoin exchange-traded funds (ETFs), totaling $21.4 million on June 26 after a $31 million influx the previous day.
Source: Farside
Axel Adler Jr., a contributor to CryptoQuant, speculated on the duration of Bitcoin’s price correction from March’s all-time highs, suggesting it mirrors the 2019-2020 correction, which lasted five months with a maximum drawdown of 46%. However, he cautioned that significant buyback activity exceeding 500,000 BTC ($31 billion) could alter this pattern, potentially ending the current drawdown. Adler also noted a recent 18% decrease in the portion of BTC supply in profit, reflecting a growing sense of pessimism among holders.
Source: Axel Adler Jr./X
Source: Axel Adler Jr./X
