Bitcoin (BTC) continued snap volatility after the July 6 Wall Street open as yearly highs gave way to a comedown.
BTC/USD 1-hour chart. Source: TradingViewBitcoin suddenly falls to new July lows
Data from Cointelegraph Markets Pro and TradingView followed BTC price action as it seesawed around the $30,000 mark.
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.
#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 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.
Predatory indeed.
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 an ongoing Twitter commentary.
BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter
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.
Fed target rate probabilities chart. Source: CME GroupCrypto 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.
Crypto liquidations data (screenshot). Source: CoinGlass
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.