Bitcoin Price Rebounds to $62K: Bulls Hope for Liquidity Snatch

Bitcoin (BTC) experienced fresh gains following the June 27 Wall Street open, fueled by incoming U.S. macroeconomic data. Despite initial jobless claims coming in below expectations, U.S. unemployment data did not trigger fresh concerns about inflation in crypto markets. BTC/USD rose by 2.3% on the day, and traders are hoping for continued momentum to overcome ask liquidity above the spot price. Popular trader Daan Crypto Trades observed that most liquidity sits above the spot price after testing the range lows at ~$59K and absorbing existing liquidity. He predicts an interesting battle over the next few weeks with the added supply overhang. Fellow trader Jelle noted that recent sell pressure from U.S. and German governments has not yet impacted the market, despite reports of coin sales and Mt. Gox creditor repayments. Encouragingly, U.S. spot Bitcoin exchange-traded funds (ETFs) saw net inflows for a second consecutive day, totaling $21.4 million on June 26 following $31 million the day prior. Axel Adler Jr., a contributor to on-chain analytics platform CryptoQuant, analyzed the potential duration of the BTC price retracement from March's all-time highs. Comparing recent price action to 2019, he believes the current correction might mirror the 2019-20 correction, lasting 5 months with a maximum drawdown of -46%. However, Adler acknowledges that history may not repeat itself, and a significant buyback exceeding 500,000 BTC ($31 billion) could potentially trigger an end to the correction. He also observed an 18% decrease in the portion of the BTC supply in profit, reflecting a sense of “pessimism” among holders.