Bitcoin (BTC) continued snap volatility after the July 6 Wall Street open as yearly highs gave way to a comedown.
Bitcoin suddenly falls to new July lows
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.
— 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 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 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.
Crypto liquidations still far from extremes
With open interest getting wiped on the return below $30,000, overall liquidations nonetheless remained cool.
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.
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.