Cryptocurrency analyst Zen has published a critical assessment of the various scenarios that can be expected for the Bitcoin price in July. Bitcoin’s price performance in June has undoubtedly left many investors were disappointed. This is because cryptocurrency it was practically trading in decline throughout the month, and at one point even below $60,000. While the price disadvantage continues, cryptocurrency analyst Zen has flagged several major liquidity pools that could determine Bitcoin’s price result in July and the next few months in the fall.

Analyst highlights Bitcoin’s potential liquidity pools

As mentioned earlier, the recent price decline caused Bitcoin to fall below $60,000 earlier this week. Notably, Zen noted that this split represents settled liquidity of less than $60,630, which is consistent with prior pricing analysis. While Bitcoin has since recovered and returned above $60,600, Zen noted that liquidity settlement suggests there is still further risk of Bitcoin falling to $60,150 in the miniature term.

Additionally, the analyst identified a number of other liquidity price points that could be used to assess momentum in July. It is worth noting that these liquidity points ultimately serve as both support and resistance areas. Should the decline continue, Zen’s analysis shows liquidity pools of $60,260, $59,440, $58,990 and $56,850. Huge transactions by major holders at these points can result in significant price movements. Removing such pools could spell trouble for investor sentiment, which in turn could ultimately cause Bitcoin to drop to $53,000.

“Will it drop to ~53k at some point? This move makes sense in the next month, but it doesn’t have to happen,” Zen said. The positive side of Zen is that the liquidity pools are $61,540, $62,540, $63,260 and $64,920.

📉 #Bitcoin Every day 📈

Bitcoin cleared liquidity above the second liquidity pool at 62440 ✅ It was rejected from the developing quarter VWAP VAL. Now the price will most likely move towards the 60650-60150 zone. The rest depends on the price action here.

The situation remains the same and requires… photo.twitter.com/LFiiiN9fDH

— Zen (@WiseAnalyze) June 26, 2024

In addition, Zen noted that Bitcoin is currently presenting contrasting scenarios on different time frames. On the daily chart, Bitcoin is clearly in a downtrend. Each bounce is sold, which means that bears are in control short-term momentum. On the other hand, the weekly candlestick time frame highlights how Bitcoin is currently effectively trapped in a choppy sideways range.

Every rally fizzles out, but every dip also attracts buying interest and accumulation. Finally, despite the recent price decline, Zen analysis indicates that uptrend remains intact in the monthly candle time frame.

What to expect from the BTC price

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

Bitcoin has a pretty solid track record in its seventh month. July is the most common month registered green candles for BTC. This historical trend could see Bitcoin eyeing a potential rally, especially if bulls manage to break above liquidity levels on the upside.

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