Bitcoin surging past the $31,000 psychological level was crucial in many ways. For one, the world’s premier cryptocurrency hit a one-year high amidst the incessant bear market.
But the gains may not stop here. Historically, July has been a month for strong rallies, according to the digital asset platform Matrixport.
In its latest analysis, Bitcoin bulls are gearing up for the “seasonal surge” as prices tend to rally in July.
Throughout the last decade, Matrixport observed that the crypto-asset has rallied by an average of more than 11% in the month. Interestingly, 7 out of 10 observations showed positive returns (70%).
Moreover, the previous three Julys have seen returns of over 27%, 20%, and 24%, respectively.
The report also noted that summer typically marks a period of consolidation for Bitcoin. However, a strong July tends to be followed by a mediocre August and a sell-off in September.
As per the firm’s year-end target of $45,000, Bitcoin price is speculated to rally towards $35,000 before encountering a selling-off session and ultimately retracing to $30,000 before attempting another crucial resistance point of $40,000.
The latest surge came after BlackRock filed an application for a spot Bitcoin ETF, followed by Invesco and WisdomTree, which refiled their submissions.
The ETF filings demonstrated the commitment of high-profile institutional investors to the digital asset space, thereby raising expectations of an institutionally driven price rally.
Furthermore, Glassnode said that the ‘Bitcoin Illiquid Supply Change’ metric continued to hover extremely elevated near cycle highs depicting the prominence of ‘hodling’ despite a surge in price.
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