Bitcoin is showing signs of strength as it attempts to break out of a long downtrend. Rebounding to $63.8K at one point
Historical data suggests that Bitcoin could rebound strongly in July. According to CoinGlass, which has been tracking Bitcoin's monthly gains since 2013, if Bitcoin falls in June, it has rallied an average of 7.42% in July. However, the report notes that events such as Mt. Gox's 140,000 BTC redemption and government selling in Germany and elsewhere could pull the price down.
QCP Capital, a Singapore-based cryptocurrency trading firm, said on its official Telegram channel, "Bitcoin broke below $60,000 last week, but started the week at $63,700. All indicators are pointing to a July bull run," he said. "Looking at historical data, BTC lost an average of -9.85% in June and gained an average of 9.6% in July. BTC spot ETFs also returned to net inflows last Friday. Expectations for the approval of an Ethereum (ETH) spot ETF are likely driving the recent rebound."
"We are seeing market buying of Bitcoin and Ethereum on small and mid-sized exchanges, which is expected to push prices higher," said one crypto market analyst. "In the past, expectations of ETH spot ETF approval led to futures market buying on Deribit, which sent ETH prices soaring. More recently, we've seen ETH futures market buying on Bybit and, to a lesser extent, BTC. The whales' buying has been followed by price volatility, so it's worth keeping an eye on."
Dan Tapiero, founder of 10T Holdings, an investment firm specializing in digital assets (cryptocurrencies), recently appeared on The Wolf of Wall Street podcast and predicted that Bitcoin could reach $150,000 in the next 18 months. "The cryptocurrency market has a regular pattern of cycles, and the correction after a steep bull run is normal and healthy," he said. With continued technological innovation and the influx of institutional investors, Bitcoin and the cryptocurrency market as a whole could see significant growth. When I first saw the potential of the cryptocurrency market, I thought it could reach a market capitalization of $10 trillion, but I've now raised my forecast to at least $30 trillion and possibly $100 trillion. In particular, within 18 to 24 months, the market capitalization of the cryptocurrency market could surpass $10 trillion," he said.
Meanwhile, Cointelegraph, a leading crypto publication, reported on July 1 that "Bitcoin prices will have to watch out for three headwinds in July, including the start of a $9 billion bond repayment by bankrupt crypto exchange Mt. Gox." The main headlines for July, according to Cointelegraph, are: Mt. Gox to begin repaying about 140,000 BTC to creditors; on-chain indicators such as the growing number of profit-taking holders; and a bearish flag pattern on the 4-hour chart. That said, Cointelegraph notes, "On the 4-hour chart, the near-term bearish outlook could be invalidated if BTC price manages to retake the 50-candle exponential moving average line at $61,925. Such a bullish reversal scenario could potentially lead to BTC price rallying to the 200-candle exponential moving average line at $64,770 in July."
