Bitcoin Needs New Highs to Break Pump-and-Dump Cycles: Traders
Over the last several months, Bitcoin’s price rallies have faced persistent selling pressure from bearish traders. Experts suggest that a surge in liquidity, driven by new all-time highs for BTC, could break this cycle. “The market needs a significant injection of liquidity,” wrote the pseudonymous trader Daan Crypto Trades in a social media post on June 13. The trader’s perspective is shaped by Bitcoin’s volatile price movements, as it consolidates within a broad range between $66,500 and $72,000.
For the past couple of months, the predominant trend has been one of “full-swing bleeding” and consistent selling during price pumps. Daan Crypto Trades believes that hitting a new all-time high has historically been an effective method to end this bearish cycle. Currently, Bitcoin is trading around $67,474, as per data from Markets Pro and Binance. This price is about 10% lower than its all-time high of $73,808 recorded on March 11. Market dynamics suggest that prices can rise quickly without needing a specific catalyst, only requiring heightened liquidity.
This necessary liquidity enables market participants to buy more Bitcoin, which tightens the bid-ask spread and drives prices higher. Luckily for the BTC bulls, a liquidity boost might be on the horizon. MicroStrategy, the largest corporate holder of BTC, announced plans to raise $500 million through a convertible senior note offering. The proceeds would be used to acquire additional Bitcoin and for other corporate purposes. Daan Crypto Trades highlighted this as a significant liquidity impulse.
The trader noted that more inflows into spot Bitcoin ETFs could support the liquidity levels needed to end Bitcoin’s consolidation phase. Another trader, Jelle, echoed this sentiment, pointing out that over $100 million flowed into spot Bitcoin ETFs on June 12. With MicroStrategy’s announcement of an additional $500 million for Bitcoin purchases, the market could see the liquidity it requires.
Currently, Bitcoin’s price remains range-bound, trapped in a post-halving re-accumulation phase. Popular analyst Rekt Capital predicts that this period could extend up to September 2024. In a social media post on June 13, he mentioned that such re-accumulation ranges typically break to the upside over time.
Similarly, analyst Mags noted in a June 9 post that this is the longest consolidation period seen in Bitcoin’s history. To provide context, in the 2020 halving cycle, there was a 21-day consolidation before Bitcoin hit an all-time high of $69,000 in November 2021. In 2017, this phase lasted for 48 days. Despite these historical precedents, Bitcoin’s price remains stuck between $67,000 and $72,000 without showing clear signs of breaking out.
Supporting this outlook, data from market intelligence firm IntoTheBlock illustrates the current market deadlock. Their In/Out of the Money Around Price (IOMAP) model shows that Bitcoin’s price sits between two critical levels. Strong support exists in the $63,500 to $67,500 zone, where about 1.62 million BTC were purchased by roughly 3.94 million addresses.
On the resistance side, a supplier congestion zone between $67,600 and $70,500 forms a significant barrier for bulls. Approximately 1.86 million BTC were bought by about 3.32 million addresses in this range. This indicates that substantial demand-side liquidity is necessary to push BTC’s price beyond this resistance, thereby breaking out of its current consolidation phase and entering a new phase of price discovery.
25 thoughts on “Bitcoin Needs New Highs to Break Pump-and-Dump Cycles: Traders”
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Bitcoins consolidation period breaking to the upside sounds nice, but weve been hearing this narrative for too long.
What an exciting read! BTC’s consolidation might end soon with this planned liquidity boost! 🚀💸
Feeling skeptical about these optimistic forecasts. The market sentiment is too bearish and unpredictable for a major breakout.
BTC is primed for a breakout! Thanks to Jelle and Daan Crypto Trades for their valuable insights.
Turning to MicroStrategy for a $500M liquidity boost seems like desperation. Is Bitcoin this fragile without corporate backing?
A surge in liquidity might just be the catalyst BTC needs. MicroStrategy, we’re counting on you!
Relying on another corporate buy or ETF inflow to save Bitcoin seems like wishful thinking. Wheres the real market growth and innovation?
The potential for a liquidity-driven breakout has me bullish on BTC. Exciting times ahead!
Kudos to these analysts for shedding light on market liquidity. BTC’s future looks bright!
With more spot Bitcoin ETFs and MicroStrategy’s $500M move, we could see a massive breakout soon!
How long are we supposed to wait for this “liquidity boost” to actually change the price dynamics? My patience is wearing thin. 😤
If we need buyers to soak up the liquidity, who’s to say there will be enough interest? Too many are just sitting on the sidelines. 🚶♂️
Rekt Capital and Daan Crypto Trades provide such valuable insights. Can’t wait to see BTC break through!
Excited to see Bitcoin’s next move. Liquidity is key, and it looks like its on the way!
Spot Bitcoin ETFs and corporate buys could just be the tipping points. Let’s break free from this range!
The liquidity boost from MicroStrategy might be just what the market needs. Exciting times ahead for BTC! 🚀💎
A new liquidity wave is just the boost Bitcoin needs. Lets ride this out to new heights!
Historical patterns don’t guarantee future performance. The market could remain in this slump despite past precedents.
Bitcoin consolidation phases always pique my interest. Rekt Capital and Daan Crypto Trades’ analyses are top-notch. 📊🔝
More inflows into Bitcoin ETFs might not be enough to counter the full-swing bleeding and bearish sentiment persisting for months.
Jelle’s take on the liquidity inflows is spot-on! Let’s break out of that consolidation phase!
Spot Bitcoin ETFs can’t be the only solution here. The market needs broader changes, not just injections of liquidity.
Betting the farm on more liquidity bringing prices back up sounds risky. What if it doesn’t work as planned? 🚫
BTC looks poised for a breakout! The increased liquidity could be a real game-changer. Let’s go!
If Bitcoin’s price is simply stuck like this, why would more liquidity suddenly change everything? Feels like we’re hoping for a miracle. 🚀