Bitcoin (BTC) surged following the opening of Wall Street on June 27 as the United States received its macroeconomic data updates.
The BTC/USD 1-hour chart displayed a boost in Bitcoin liquidity above the spot price. Figures from Cointelegraph Markets Pro and TradingView indicated that Bitstamp reached daily highs of $62,323.
Even though initial jobless claims fell below expectations, concerns about U.S. unemployment data did not rattle the crypto markets regarding inflation trajectories. At the time of writing, BTC/USD had risen by 2.3%, with traders optimistic about maintaining this momentum to raise liquidity beyond the spot price. Renowned trader Daan Crypto Trades emphasized the bulk of liquidity residing above the previously tested range lows around $59K.
A breakdown of the BTC/USDT perpetual swap order book liquidity levels on Binance was depicted in a chart provided by Daan Crypto Trades/X. Another trader, Jelle, noted that the narrative of selling pressure from the U.S. and German governments over recent weeks had not yet impacted the market significantly. He speculated that Bitcoin’s range lows were holding steady despite these external factors.
Daan Crypto Trades highlighted a positive trend with a second consecutive day of net inflows to U.S. spot Bitcoin exchange-traded funds (ETFs). On June 26, these funds managed $21.4 million, following a $31 million inflow the preceding day, as sources including Farside Investors from the UK confirmed.
Looking at a broader perspective, Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, pondered the potential duration of BTC price retracement from its all-time highs in March. By drawing parallels with previous price actions, Adler suggested that Bitcoin was mimicking patterns from the end of 2019, hinting at a possible correction lasting five months with a maximum drawdown of -46%.
Adler stressed the possibility of a shift in circumstances, noting that $31 billion in buying pressure with 500,000 BTC could alter the market dynamics, asserting that history does not always repeat itself.
In a separate study, Adler noted an 18% decrease in the portion of BTC supply in profit, reflecting a prevailing sense of “pessimism” among long-term hodlers.
It is important to mention that this article does not provide any investment advice or suggestions, and all investment decisions carry inherent risks, requiring readers to conduct thorough research before making any financial choices.