Bitcoin (BTC) experienced continued volatility following the Wall Street open on July 6. After reaching yearly highs earlier in the day, the cryptocurrency saw a sharp decline in value.
BTC/USD was closely monitored by Cointelegraph Markets Pro and TradingView as it fluctuated around the $30,000 mark. The surge to its highest levels since mid-2022 was short-lived, with Bitcoin ultimately giving back all its gains. The Bitstamp exchange recorded new July lows for BTC/USD, bottoming at $29,925.
Traders observed these price movements with caution. The charts indicated that BTC was dropping into bid liquidity in the $30,000 range, leaving traders waiting to see if it would hold, break, or experience further declines.
Popular trader Jelle suggested that a potential return to the $28,000 range would be a suitable buy-in point. Financial commentator Tedtalksmacro pointed out that the move to $30,000 had mostly involved spot buying, with derivatives traders catching up later. This contributed to the sweep of range highs.
Michaël van de Poppe, founder and CEO of trading firm Eight, expressed concerns about the declining prices on Twitter. He stated that Bitcoin needed to flip back up; otherwise, a scenario with a price of $28,500 seemed likely. The ongoing commentary also mentioned the anticipation of a rate hike due to positive unemployment data.
Van de Poppe referred to the strong employment data in the United States prior to the Wall Street open. The release of this data further fueled expectations that the Federal Reserve would increase interest rates later in July. According to CME Group’s FedWatch Tool, these expectations stood at nearly 95% at the time of writing.
Despite the decline below $30,000 and the subsequent wiping of open interest, overall liquidations in the crypto market remained relatively calm. Data from CoinGlass showed that combined long and short liquidations for BTC amounted to $43 million on July 6. Cross-crypto liquidations totaled around $120 million.
It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risks, and readers should conduct their own research before making any decisions.
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