Bitcoin (BTC) made fresh gains after the June 27 Wall Street open as United States macroeconomic data flowed in.
Bitcoin liquidity “stacked” above spot price
Data from Cointelegraph Markets Pro and TradingView showed daily highs of $62,323 on Bitstamp.
Despite initial jobless claims coming in below expectations, U.S. unemployment data failed to spook crypto markets into fresh concerns over the path of inflation.
BTC/USD was up 2.3% on the day at the time of writing, and traders hoped that trajectory could be sustained in order to take ask liquidity above the spot price.
“Most of the liquidity lies above after testing the range lows at ~$59K and taking all the liquidity that sat there,” popular trader Daan Crypto Trades noted in part of an update on X.
“It will be an interesting battle over the next couple of weeks with this new supply overhang added.”
An accompanying chart showed BTC/USDT perpetual swap order book liquidity levels on the largest global exchange, Binance.
Fellow trader Jelle added that the sell pressure narrative originating from both the U.S. and German governments in recent weeks had not made itself felt on the market.
“Looks like Bitcoin’s range lows are holding - despite the US & German governments selling coins & Mt. Gox finally paying back creditors,” he suggested.
Daan Crypto Trades acknowledged another encouraging sign in the form of a second consecutive day of net inflows to the U.S. spot Bitcoin exchange-traded funds (ETFs).
These managed $21.4 million on June 26, following $31 million the day prior, data from sources including United Kingdom-based investment firm Farside Investors confirmed.
BTC price drawdown could last five months
Zooming out, Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, queried how long the BTC price retracement from March’s all-time highs could last.
Related: Bitcoin Mayer Multiple hits lows that last accompanied $30K BTC price
Comparing recent price action from years past, he argued that Bitcoin was copying behavior last seen at the end of 2019.
“The current market closely resembles the correction of 2019-20, making it the most likely scenario for this correction, which lasted 5 months with a maximum drawdown of -46%,” he wrote in an X commentary on the day.
Adler added that all may still change — disrupting the status quo was a matter of 500,000 BTC ($31 billion) in buying pressure.
“History is not obliged to repeat itself,” he concluded.
“An active buyback exceeding 500K BTC could trigger the end.”
In a separate analysis, Adler showed an 18% decrease in the portion of the BTC supply in profit, corresponding to an overall feeling of “pessimism” among hodlers.
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