Bitcoin (BTC) continued its strong volatility after Wall Street opened on July 6 as yearly highs gave way to a decline.
BTC/USD 1 hour chart. Source: TradingView
Bitcoin suddenly falls to new lows in July
Data from Cointelegraph Markets Pro and TradingView tracked BTC price action as it oscillated around the $30,000 mark.
Bitcoin had rallied to its highest level since mid-2022 earlier in the day, but the party was short-lived as the largest cryptocurrency gave back all of its gains.
BTC/USD even made fresh July lows on Bitstamp, bottoming at $29,925 so far.
As the “scalper dream” came true on the charts, traders took a step back to see what would happen next.
Popular trader Jelle was one of those eyeing a possible return to the $28,000 area, which he believes would be a suitable entry point.
Financial commentator Tedtalksmacro argued that the move from below to $30,000 was “mostly spot buying,” with derivatives traders catching up to level range highs.
“Breaking lows again,” wrote Michaël van de Poppe, founder and CEO of retail company Eight, in a running Twitter comment.
“We need to bounce back here or a $28,500 scenario for bitcoin seems likely.” Markets expect rate hike on positive unemployment data.” BTC/USD commented chart. Source: Michael van de Poppe/Twitter
Van de Poppe cited strong US jobs data, released ahead of Wall Street, which reinforced already high market expectations that the Federal Reserve would hike rates again later in July.
According to CME Group’s FedWatch tool, those expectations were nearing 95% at the time of writing.
Chart showing the Fed’s target rate probabilities. Source: CME Group
Crypto liquidations are still far from extremes
However, overall liquidations remained cool as open interest was wiped out at yields below $30,000.
Related: Bitcoin analysis concludes BTC price could stall at $35,000
As of July 6, combined long and short liquidations in BTC totaled $43 million, according to data from monitoring resource CoinGlass. Cross-crypto liquidations totaled around $120 million.
Crypto liquidation data (screenshot). Source: CoinGlass
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This article does not contain any investment advice or recommendations. Every investment and trading activity involves risk and readers should do their own research in making their decision.
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