Bitcoin’s price experienced a sudden dip below the $30,000 mark, erasing the gains that had propelled it to new yearly highs earlier in the day. The volatility continued after Wall Street opened on July 6, resulting in a downturn for BTC/USD. Data from Cointelegraph Markets Pro and TradingView revealed Bitcoin’s seesawing action around the $30,000 level, ultimately reaching new lows for July.
Traders observed a “scalper’s dream” scenario unfolding on the charts, with a momentary retreat prompting them to assess what would happen next. Notably, popular trader Jelle identified a potential return to the $28,000 range as an attractive buy-in point. Financial commentator Tedtalksmacro noted that the move up to $30,000 primarily involved spot buying, while derivatives traders caught up to facilitate the upward push.
Michaël van de Poppe, founder and CEO of trading firm Eight, shared ongoing Twitter commentary highlighting the recurrence of lower lows. He emphasized the need for a rebound to avoid a potential scenario where Bitcoin could drop to $28,500. Van de Poppe also acknowledged the market’s expectation of an interest rate hike based on positive unemployment data in the United States.
The release of strong employment data prior to the Wall Street open further fueled anticipation that the Federal Reserve would raise interest rates later in July. According to CME Group’s FedWatch Tool, these expectations stood at nearly 95% at the time of writing.
Although the drop below $30,000 wiped out open interest, the overall level of liquidations remained relatively calm. CoinGlass data indicated combined long and short liquidations on Bitcoin totaled $43 million on July 6, while cross-crypto liquidations amounted to around $120 million.
The article concludes by noting that it does not provide investment advice or recommendations. Every investment and trading decision carries inherent risks, and readers are encouraged to conduct their own research before making any decisions.