Markets
Bitcoin Trader Hopes for Liquidity Theft as BTC Price Drops Back to $62K — TradingView News
Bitcoin BitcoinUSD posted fresh gains after Wall Street opened on June 27, thanks to the influx of macroeconomic data from the United States.
Bitcoin liquidity is “stacked” above the spot price
Data from Cointelegraph Markets Pro and TradingView showed daily highs of $62,323 on Bitstamp.
Despite initial jobless claims falling short of expectations, US unemployment data failed to spook cryptocurrency markets, sparking renewed concerns about inflation.
“Most of the liquidity sits above after testing the ~$59,000 low range and taking all the liquidity stored there,” noted popular trader Daan Crypto Trades in part of an update on X.
“It’s going to be an interesting battle over the next couple of weeks with the addition of this new oversupply.”
An accompanying graph was shown 
Fellow trader Jelle added that the selling pressure expressed by both the US and German governments in recent weeks had not been felt in the market.
“It appears that the bottoms of Bitcoin’s range are holding, despite the US and German governments selling coins and Mt. Gox finally paying off creditors,” he suggested.
Daan Crypto Trades has recognized another encouraging sign in the form of a second consecutive day of net inflows to US spot Bitcoin exchange-traded funds (ETFs).
They managed $21.4 million on June 26, after $31 million the previous day, as confirmed by data from sources including British investment firm Farside Investors.
The BTC price decline could last five months
Zooming out, Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, wondered how long the BTC price retracement from March’s all-time highs could last.
Comparing price action from past years, he argued that Bitcoin was copying behavior last seen in late 2019.
“The current market looks a lot like the 2019-20 correction, which makes it the most likely scenario for this correction, which lasted 5 months with a maximum drawdown of -46%,” X wrote in a commentary that day.
Adler added that everything could still change: disrupting the status quo was a matter of 500,000 BTC ($31 billion) of buying pressure.
“History does not have to repeat itself,” he concluded.
“An active buyback above 500,000 BTC could trigger the end.”
In a separate analysis, Adler showed an 18% drop in the share of BTC supply in profit, corresponding to a general sentiment of “pessimism” among hodlers.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should conduct their own research before making a decision.