Bitcoin’s past July gains and heavy short bets point to a rally toward $75,000, but a break below key support keeps the risk of $55,000 in play.
Bitcoin (BTC) is heading for its worst monthly loss since mid-2022, with BTC down roughly 18.5% in June as price struggles to hold the psychological $60,000 support level.
BTC/USD monthly chart. Source: TradingView
Will Bitcoin’s downside momentum extend in July, or is BTC preparing for a recovery?
July may become a "bullish month for Bitcoin," according to analyst Fleh, who predicted BTC price to rally toward $75,000 next month.
The bullish thesis is based on Bitcoin’s Binance BTC/USDT liquidation heatmap, which shows a large concentration of short liquidation levels sitting above the current price.
On the monthly chart, the strongest visible liquidity cluster sits near $67,645, where the chart shows around $247.39 million in liquidation leverage and roughly $2.26 billion in cumulative short liquidation leverage.
Binance BTC/USDT liquidation heatmap (1 month). Source: CoinGlass
For beginners, such clusters are often called “magnet zones.” When many leveraged positions are concentrated around the same price area, the market can move toward that zone because liquidations create forced buying or selling pressure.
In this case, significant liquidity sits above Bitcoin’s current price near $60,000.
If BTC rebounds and pushes toward $67,600, short sellers may be forced to close their positions. Since closing shorts requires buying Bitcoin back, that can add fresh upside pressure and fuel a short squeeze.
"I think $BTC bottoms here at 60k for now, targeting 75k to the upside before any chance of lower," Fleh said in a Saturday post.
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