Key Points
- Bitcoin has the potential to trend higher despite recent corrections, according to Amberdata.
- However, the demand for Bitcoin has shown a decline in June compared to April and May.
Bitcoin, also known as BTC, has managed to maintain a consolidation above $100K. This comes despite increased profit-taking, but the cryptocurrency could potentially rally higher.
This information comes from Amberdata, a crypto options analytics firm. Despite the recent correction from $111.9K, the firm believes that the uptrend could continue.
Market Predictions and Influences
In a weekly market report, Amberdata’s Director of Derivatives, Greg Magadini, stated that he believes the bullish trend of Bitcoin remains unscathed. Despite the recent pull-back, he predicts a slow and consistent increase in prices.
The market does not currently anticipate significant price swings or rallies in the mid-term. This is indicated by the current implied volatility (IV) dropping to an average of 30-40% compared to historical realized volatility.
Jeff Park, Bitwise’s Head of Alpha, expects IV to reprice higher from July. He believes that Bitcoin IV is currently mispriced because the world is unaware of what’s coming in Q3.
Regulatory Shifts and Market Participation
Various analysts are predicting potential Federal rate cuts in Q3. If tariff wars are resolved, this could stimulate risk-on sentiment. Magadini also mentioned that the recent successful Circle’s IPO and the overall positive shift in regulation could fuel the momentum.
However, the demand for Bitcoin has shown a decline in June after a promising recovery in April and May. If the demand for Bitcoin decreases further, it could extend the range-bound price action or potentially drag the asset lower in the short term.
This bearish scenario could be accelerated if the macro front turns negative. According to Coinbase, despite this week’s renewed trade talks between the U.S. and China in London, July 9 remains a key date to watch for other tariff deadlines.
The 7-day liquidation heatmap reinforced the range-bound price outlook in the short term. At press time, there were liquidity pockets and magnetic zones on either side of the price action. If BTC reclaims $110K, nearly $7 billion shorts will be liquidated. A similar amount is at risk if the price dips to $100K.
