Bitcoin price dips below $30K as daily candle turns sour.
Bitcoin (BTC) continued to experience volatile fluctuations after the opening of Wall Street on July 6, as its yearly highs were followed by a decline.
Bitcoin suddenly falls to new July lows
Data from Cointelegraph Markets Pro and TradingView tracked the movement of the BTC price as it fluctuated around the $30,000 mark.
Earlier in the day, Bitcoin had reached its highest levels since mid-2022, but the rally was short-lived as the largest cryptocurrency gave back all of its gains.
BTC/USD even reached new lows in July on Bitstamp, bottoming out at $29,925.
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As a “scalper’s dream” unfolded on the charts, traders took a step back to observe 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 considering a potential return to the $28,000 range, which he suggested would be a good buying opportunity.
Financial commentator Tedtalksmacro argued that the move from below $30,000 had been mainly driven by spot buying, with derivatives traders catching up to allow for the sweeping of range highs.
Predatory indeed. Late longs now flushed (again) pic.twitter.com/gEj0h1cMg8
— tedtalksmacro (@tedtalksmacro) July 6, 2023
“Lows are getting taken again,” wrote Michaël van de Poppe, founder and CEO of trading firm Eight, in 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.”
Van de Poppe referred to strong employment data from the United States, which was released before the opening of Wall Street and increased market expectations of another interest rate hike by the Federal Reserve later in July.
According to CME Group’s FedWatch Tool, these expectations were at nearly 95% at the time of writing.
Crypto liquidations still far from extremes
Although open interest was wiped out upon falling below $30,000, overall liquidations remained relatively low.
Related: Bitcoin analysis agrees BTC price may stall at $35K
According to data from monitoring resource CoinGlass, the combined total of long and short liquidations for BTC on July 6 was $43 million. Cross-crypto liquidations amounted to around $120 million.
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