At spot rates, Bitcoin and leading altcoins like Ethereum and Solana continue their upward trend. Despite some retracement earlier today, Bitcoin (BTC) remains solidly above the $60,000 psychological threshold. Similarly, Ethereum (ETH) and Solana (SOL) are holding firm above $3,300 and $155, respectively.
A Low-Liquidity Rally: What’s Fueling Crypto’s Rise?
A notable observation has emerged as the cryptocurrency market rebounds following the downturn seen in June and early July. According to one analyst on X (formerly Twitter), this current rally appears to be organic and is happening without the usual catalysts, such as increased liquidity or significant capital inflows that typically drive market spikes.
Unlike previous rallies, particularly in 2021 when prices surged due to central bank easing or the approval of spot Bitcoin ETFs in the United States, there are no clear signs that the current price increases are being fueled by a fresh influx of capital. Furthermore, this rally is occurring despite the U.S. Federal Reserve maintaining its interest rates, unlike in 2020 and 2021 when rate cuts sparked a massive price surge in response to rising inflation.
Instead, Bitcoin and other cryptocurrencies are climbing without any major catalysts. A significant factor in this price movement could be the recent sale of coins by the German government, which concluded by July 12. This event coincided with a bounce in Bitcoin and other crypto prices from their July lows, allowing BTC to surpass key liquidation levels and stabilize above $62,000.
A “Crazier” and “Longer” Bull Run on the Horizon?
Given the current market conditions, the analyst suggests that the next Bitcoin bull run could be not only more intense but also longer-lasting. With Bitcoin holding firm above $60,000, there is growing optimism among traders that further gains are likely in the near future.
From a technical perspective, buyers currently have the upper hand as BTC trends above the middle Bollinger Band (BB) for the first time in over a month. Despite the selling pressure experienced on July 4 and 5, buyers remain resilient, and market sentiment is increasingly positive.
Looking ahead, a key resistance level to watch is $66,000. If Bitcoin can break through this level, the chances of it floating above $72,000 — a price point that proved elusive in June—remain strong.
Potential drivers for this continued upward movement inсlude expectations that the U.S. Federal Reserve might cut interest rates by the end of the year. With inflation cooling and the U.S. labor market showing strength, analysts at Goldman Sachs believe that the macroeconomic conditions are becoming favorable for rate cuts, which could further fuel the crypto market’s growth.
