Bitcoin Struggling: Fed Liquidity Is Rising but BTC Crashing Towards $60,000
Bitcoin is dumping, crashing on the last day as prices approach $60,000. If sellers press on, BTC could drop below $56,000
Bitcoin is stuck in a range, and bears, as it looks, are not in a hurry to leave. For this reason, the short-term outlook is bearish, at least for now, until there is a sharp shift in trend. In the short to medium term, sellers should look to add to their shorts, targeting $60,000 and May 2024 lows. However, if there is a spike, confirming the weekend’s gains, the coin could rip higher, mirroring gains of early Q1 2024.
Before then, traders should contend with drab price action and sideways movement. Bitcoin is down 3% in the past 24 hours at press time but stable in the last week. Accompanying the boring consolidation is low engagement. To put in the numbers, the average trading volume is just $22 billion, below average.
The below Bitcoin news are trending:
- The United States Federal Reserve‘s net liquidity is pumping. According to trackers, it recently spiked to the highest level in 15 months. When liquidity increases, crypto and BTC prices tend to follow.
- FTX creditors will distribute $15 billion in cash to affected customers in the next few months. Since more victims were pro-crypto, analysts now think most of this cash will flow to crypto, including BTC.
Bitcoin Price Analysis
BTC/USD is in red, looking at the performance in the daily chart.
Even though there were gains over the weekend, the failure of buyers to push higher and close above $63,000 is a concern.
From the look of things, traders should consider shorting, aligning with losses of June 24.
Any conclusive break, yanking prices from the current consolidation might set the foundation for gains above $66,000.
Even so, this depends on trading volume and the breakout bar.
If sellers continue pressing on today, breaking $60,000, Bitcoin could drop below $56,500 in a bear trend continuation formation.
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