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| By Marija Matic |
Bitcoin (BTC, “A-”) closed its H1 candle with an impressive 84%+ gain and monthly with an 11.98%+, marking a significant milestone as it registers its first positive June performance in the past four years.
Now the question before us is whether July can surpass this achievement, considering its historically bullish nature within the cryptocurrency realm.
July has often been regarded as the second most bullish month for crypto, trailing closely behind October. The current price action along with this historical trend shows there is potential for another strong move upward.
Over the past week, Bitcoin has been exhibiting a rather uneventful yet bullish trend, characterized by a range-bound movement. However, a notable surge in volatility occurred last Friday, primarily triggered by the Securities and Exchange Commission's dismissal of the spot BTC ETF applications submitted by BlackRock (BLK) and Fidelity, deeming them "inadequate."
This news, initially perceived as significant, swiftly lost its impact as the market realized that the dismissal simply prompted the funds to reapply, a course of action they promptly initiated. Nevertheless, this volatility served as a testament to my observation of the overall bullish sentiment from last Monday, as it demonstrated the robustness of the $29,500 level, which acted as a formidable support.
The price effectively rebounded from this level and rapidly ascended above $30,500, where it currently resides.
That Bitcoin was able to turn $30,500 into a support level holds great significance, and even more so if it can hold there for a third consecutive day. Such an achievement would serve as a compelling demonstration of strength, indicating the active participation of buyers entering the market at this particular level.
The next resistance level to strive for would be $31,500. The price surpassing that mark would be crucial for reaching the significant target range of buyers situated between $32,000 and $32,750 (depicted in purple):
These buyers could influence a strong upward move toward $36,000 and higher.
At the same time, Ethereum (ETH, “B”) is currently forming a so-called “double bottom,” which can be very bullish for the price. As such, it wouldn’t be out of the realm of possibility to see the important psychological level of $2,000 broken in the near future.
Meanwhile, crypto asset products have recorded a second week of inflows, which means that institutions remain bullish on crypto.
With $125 million inflow last week, crypto funds have now recorded a total of $334 million net inflows in just two weeks — the highest two-week inflow this year.
It seems the bulls are chomping at the bit. We just have to see if the market has room for them to run as summer heats up.
Notable News, Notes & Tweets
- MicroStrategy (MSTR) has acquired 12,333 Bitcoin for a whopping $347 million in the second quarter, which is its largest Bitcoin acquisition since prices peaked in late 2021.
- Binance exchange will list Pendle (PENDLE, Not Yet Rated) in the Innovation Zone.
- Coinbase (COIN) is up almost 30% in a week, showing a strong return of trust.
- Singapore is banning exchanges from offering lending and staking services to retail customers.
What’s Next
As the price of Bitcoin continues to consolidate within a symmetrical triangle pattern, the future direction remains uncertain as the potential for movement in either direction remains.
However, considering the noteworthy display of strength exhibited by Bitcoin and the presence of bullish technical indicators, the likelihood of an upward trajectory becomes a more promising outcome, barring any unforeseen news disrupting the current scenario, that is.
As such, we’ll be watching the potentially unfavorable Federal Open Market Committee meeting on Wednesday like a hawk.
Furthermore, the monthly Moving Average Convergence Divergence, or MACD, indicator has just transitioned into the green zone — a sign historically indicative of consolidation followed by the initiation of a bull market in the subsequent months.
Bitcoin's volatile journey has undeniably reignited public interest, particularly as the price has surged by an impressive 85% year to date, suggesting that the cryptocurrency is merely at the initial stages of its upward trajectory.
This substantial gain starkly contrasts with the relatively modest 15% increase witnessed in the S&P 500. It’s only a matter of time before more TradFi investors begin noticing the difference.
Best,
Marija
