Bitcoin News: Experts Say Bitcoin Must Reach Fresh Highs to End Pump-and-Dump Volatility
Bitcoin News – Bitcoin bears have been selling off during every rally in recent months, and analysts suggest that a surge in liquidity driven by BTC reaching “fresh all-time highs” could break this cycle.
A Call for High Liquidity
Market is in need of a big liquidity boost, wrote pseudonymous crypto trader Daan Crypto Trades on the X social media platform on June 13.
Daan Crypto Trades’ comments stem from Bitcoin’s volatile “whipsaw” price action, which has seen it oscillate between $66,500 and $72,000.
Full-swing bleeding and selling into every pump has been the theme for the past couple of months, the trader explained, adding that achieving a fresh all-time high for Bitcoin is often the best way to end this cycle.
Current Market Data and Trends
According to data from Cointelegraph Markets Pro and Binance, BTC is trading at $67,474, 10% below its all-time high of $73,808, which was reached on March 11. Daan Crypto Trades noted that Bitcoin’s price could rise swiftly without needing a specific catalyst, simply from increased buying activity.
High liquidity is crucial for this, as it allows market participants to purchase more BTC, resulting in a tighter bid-ask spread and driving prices higher.
Potential Liquidity Injections
Bitcoin bulls may soon see an influx of liquidity, as MicroStrategy, the largest corporate holder of BTC, plans to raise $500 million through a convertible senior note offering to “acquire additional Bitcoin” and for other corporate purposes. “That’s a fresh $500M liquidity impulse for you right there,” Daan Crypto Trades commented on the news.
Furthermore, increased inflows into spot Bitcoin ETFs could also provide the necessary liquidity to push BTC out of its consolidation phase. Fellow trader Jelle highlighted that over $100 million flowed into spot Bitcoin ETFs on June 12, and the potential $500 million from MicroStrategy could significantly boost market liquidity.
100m in inflows for the ETFs yesterday; let’s see if they show up again – especially now that Saylor has announced he’ll be buying another 500m worth of coins soon.
Bitcoin Price Still in Consolidation
Currently, Bitcoin remains stuck in a post-halving reaccumulation range, which could last until September 2024, according to popular analyst Rekt Capital.
“This cycle has been filled with re-accumulation ranges, which inevitably break to the upside over time,” Rekt Capital shared on June 13 via X.
The ongoing consolidation is the longest in the current cycle, as noted by another analyst, Mags, who pointed out that “out of all consolidations, the current one is the longest.”
During previous cycles, such as the one following the 2020 Bitcoin halving, there was a 21-day consolidation before Bitcoin’s price surged to an all-time high of $69,000 in November 2021. In 2017, the consolidation period lasted 48 days.
“Bitcoin shows no changes, with the price still chopping sideways within the $67K-$72K price range as market participants lose their minds,” Daan Crypto Trades remarked, predicting that BTC is likely to “stick to the horizontal levels.”
The Battle Between Buyers and Sellers
Additional insights from market intelligence firm IntoTheBlock reveal the current stalemate between buyers and sellers. Their in/out of the money around price (IOMAP) model shows that BTC’s price is wedged between two significant levels.
There is strong support in the $63,500 to $67,500 range, where approximately 1.62 million BTC were bought by 3.94 million addresses. On the upside, the supply congestion zone between $67,600 and $70,500 presents a tough resistance for bulls, with roughly 1.86 million BTC bought by 3.32 million addresses.
High demand-side liquidity is needed to push BTC’s price past this resistance, breaking it out of consolidation and into a new phase of price discovery.
FAQ: Bitcoin Market Dynamics and Liquidity
Why have Bitcoin bears been selling during every rally recently?
Bitcoin bears have been selling during every rally over the past few months due to the volatile and uncertain market conditions. This behavior is part of a cycle where traders capitalize on short-term gains, contributing to the pump-and-dump pattern.
What is the significance of Bitcoin reaching new all-time highs?
Reaching new all-time highs is significant because it can break the cycle of pump-and-dump patterns. A fresh all-time high can boost market confidence and attract more liquidity, helping stabilize the price and encourage sustained growth.
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