Bitcoin (BTC) continued snap volatility after the July 6 Wall Street open as yearly highs gave way to a comedown.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin suddenly falls to new July lows
Data from Cointelegraph Markets Pro and TradingView followed BTC price action as it seesawed around the $30,000 mark.
Bitcoin had surged to its highest levels since mid-2022 earlier in the day, but the party ended up short-lived as the largest cryptocurrency gave back all its gains.
BTC/USD even set new July lows on Bitstamp, so far bottoming at $29,925.
As a “scalper’s dream” came true on the charts, traders took a step back to see what would happen next.
#FireCharts shows #BTC is dropping into bid liquidity in the $30k range. Waiting to see if it holds, breaks or rugs. Stay tuned… pic.twitter.com/kd1kdbK41C
— Material Indicators (@MI_Algos) July 6, 2023
Popular trader Jelle was among those eyeing a potential return to the $28,000 range, which he suggested would be a suitable buy-in point.
Financial commentator Tedtalksmacro argued that the move to $30,000 from below had been “mostly spot” buying, with derivatives traders catching up to allow for the sweep of range highs.
Late longs now flushed (again) pic.twitter.com/gEj0h1cMg8
— tedtalksmacro (@tedtalksmacro) July 6, 2023
“Lows are getting taken again,” Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in part of an ongoing Twitter commentary.
“Needs to flip back up here, otherwise $28,500 scenario seems likely for Bitcoin. Markets expecting a rate hike due to positive unemployment data.”BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter
Van de Poppe referenced strong United States employment data released prior to the Wall Street open, which boosted already-high market expectations that the Federal Reserve would hike interest rates again later in July.
According to CME Group’s FedWatch Tool, those expectations stood at nearly 95% at the time of writing.
Fed target rate probabilities chart. Source: CME Group
Crypto liquidations still far from extremes
With open interest getting wiped on the return below $30,000, overall liquidations nonetheless remained cool.
Related: Bitcoin analysis agrees BTC price may stall at $35K
According to data from monitoring resource CoinGlass, combined long and short liquidations on BTC stood at $43 million for July 6. Cross-crypto liquidations totaled around $120 million.
Crypto liquidations data (screenshot). Source: CoinGlass
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.