Bitcoin Bulls Anticipate Positive Price Movements in July

Bitcoin Bulls Anticipate Positive Price Movements

Bitcoin (BTC) bulls are optimistic about potential price increases in the upcoming weeks as seasonal cycles may drive up the value of the leading cryptocurrency. BTC has been trading between $59,000 and $74,000 since April, facing downward pressure from significant sell-offs, upcoming selling activities, ETF outflows, and a prevailing negative sentiment among retail traders.

However, the outlook for July appears promising. The first day of the month witnessed U.S.-listed ETFs attracting nearly $130 million in inflows, marking the highest inflow since early June following more than $900 million in outflows throughout the month.

Historical Data Supports Bullish July

Historical data indicates that July tends to be a bullish month for Bitcoin. With a median return of 9.6% in July, Bitcoin typically experiences a strong recovery, especially after a negative performance in June. According to Singapore-based QCP Capital, various indicators point towards a potentially bullish July, with the options market already positioning for an upward movement.

Positive July Trends

• Bitcoin has shown an average gain of over 11% in July over the last decade.
• 7 out of 10 months have yielded positive returns for Bitcoin in July.
• Crypto fund Matrixport’s report highlighted July returns of around 27%, 20%, and 24% from 2019 to 2022, respectively.

Understanding Seasonality in Crypto Markets

Seasonality in the crypto market refers to the regular and predictable patterns that assets follow on a yearly basis. Various factors contribute to these trends, such as profit-taking around tax season in April and May leading to temporary price declines, and the traditional bullish “Santa Claus” rally in December, indicating increased market demand.