Bitcoin Bulls Remain Optimistic Despite Low Liquidity

• While celebrating Independence Day in the US, Bitcoin (BTC) bulls are closely watching the possibility of surpassing the 52-week high of the asset.
• Despite the decrease in liquidity measures, experts claim that Bitcoin will rally as it is already on an impressive trajectory.
• At the beginning of the week, BTC rose to $31,380 despite strong resistance against macroeconomic uncertainties.

While celebrating Independence Day in the US, Bitcoin bulls remain optimistic for an upward movement despite low liquidity levels.

Bitcoin Bulls Targeting the 52-Week High

While celebrating Independence Day in the US, Bitcoin (BTC) bulls are closely watching the possibility of surpassing the 52-week high of the asset. On-chain analytics data indicates a cooling in liquidity in the virtual currency markets before the holidays. Despite the decrease in liquidity measures, experts claim that Bitcoin will rally as it is already on an impressive trajectory.

Kyle Doane, an executive at Arca:

“Historically, liquidity tends to be low during holidays, and when combined with a recent significant increase in leverage, prices will be more sensitive to sharp movements. The market is still bullish, and overall sentiment is improving.”

At the beginning of the week, BTC rose to $31,380 despite strong resistance against macroeconomic uncertainties. Experts predict that the asset class will surpass its annual high of $31,389 during the holidays, but everything is currently balanced.

Since the beginning of this year, BTC has shown an impressive increase of around 80% from the $16,000 levels. Although the current price is still far from the all-time high of $69,000, the steady upward momentum of BTC in 2023 gives hope to investors in the asset class.

In recent weeks, the rise of Bitcoin has also had a positive impact on the shares of digital asset companies. Shares of US-based exchange Coinbase are trading at $79.93, with a 12% increase. Other successful companies as the holidays approach include Marathon Digital, MicroStrategy, and Riot Platforms.

Bitcoin ETFs Igniting Frenzy

There has been significant activity around the Spot Bitcoin Exchange Traded Fund (ETF), with a group of firms amending their applications according to the US Securities and Exchange Commission (SEC).

The amended applications specify the names of the markets that need to be monitored in a new surveillance sharing agreement. Fidelity and BlackRock are awaiting SEC approval for a spot Bitcoin ETF that has the potential to take the asset class to new highs.

After SEC approval for a future Bitcoin ETF, the asset class peaked at $69,000 in November 2021.