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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