At spot rates, Bitcoin and top altcoins like Ethereum and Solana continue to edge higher. Despite the retracement earlier today, BTC is firm and trending above the $60,000 psychological round number. At the same time, ETH and SOL prices are firm above $3,300 and $155.
Bitcoin, Crypto Prices Rising Though Liquidity Is Low
One analyst has picked out an anomaly as crypto and altcoin prices push higher, recovering after the June and early July drawdown. Taking to X, one observer noted that the rally is organic.
Of note, there are no usual catalysts, including an uptick in liquidity marked by steep inflows, as expected when the market spikes.
As seen in the past, and especially when prices rose in 2021 due to central banks across the world easing or after the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, there are no signs that prices are edging higher due to more capital pouring in.
At the same time, it happens when the United States Federal Reserve (Fed) has not slashed rates, like in 2020 through 2021, triggering a lift-off now that inflation was expected to rise, and it did.
What’s happening is that Bitcoin and crypto prices are edging higher without major catalysts. A major reprieve came when the German government finally sold all its coins by July 12.
This coincided with Bitcoin and crypto prices bouncing from July lows. The bounce saw BTC clear immediate liquidation levels, now support, to float above $62,000.
Will The Next BTC Bull Run Be “Crazier” And “Longer”?
For this reason, the analyst thinks the upcoming bull run will be not only “crazier” but also more extended. At press time, Bitcoin remains firm, expanding above $60,000, and traders expect more gains in the days ahead.
Technically, buyers have the upper hand now that prices are trending above the middle BB for the first time in over four weeks. Buyers are unyielding, soaking in the selling pressure of July 4 and 5.
Still, optimism is high that Bitcoin has more room to bounce. A key resistance line to watch in the days ahead is $66,000. If this level is broken, the odds of BTC floating above $72,000, a zone that wasn’t broken in June, remain high.
Drivers of this leg up would include hopes of the United States Fed slashing rates by the end of the year. More traders are betting on multiple rate cuts by the end of the year.
Goldman Sachs’ analysts are already convinced that all macroeconomic conditions are ripe for rate cuts. From recent releases, inflation is cooling off while the United States labor market is strong.