Last month, BTC faced heavy selling pressure from capitulating Bitcoin miners, who offloaded around $2 billion worth of their holdings due to falling revenue. The consistent selling activities of governments, including those of the United States and Germany, created additional selling pressure.
However, some market observers believe BTC will recover from the June lows and record a strong July performance.
Bullish July
QCP, a Singapore-based crypto trading firm, said available indicators predict that BTC would have a “bullish July.”
According to the firm, historical data shows that Bitcoin has a median return of 9.6% in July and tends to bounce back strongly, especially after a negative June.
QCP expects this trend to continue, noting that Bitcoin exchange-traded funds (ETFs) are recording inflows again. The company pointed out that the ETFs recorded their highest daily inflow in two weeks, with $73 million worth of funds flowing into the financial instruments on June 28.
This substantial inflow, alongside the fact that the firm’s options desk reported flows, indicated market preparation for an upward move. It stated:
“Our options desk also saw flows positioning for an upside move last Friday into the month-end, possibly in anticipation of the ETH spot ETF launch. Many signs point to a bullish July.”
Moreover, crypto trader Rekt Capital corroborated QCP’s bullish prediction. According to the analyst, Bitcoin is doing everything right to form a cluster of price actions that could develop over July. He added:
“But ultimately, it exists to prepare Bitcoin for a rally back to the Range High at $71,500”
Political influence
Meanwhile, crypto research firm 10x Research noted that these predictions could be impacted by US politics.
The firm stated:
“Bitcoin has rallied +4% as US President Biden refuses to let other Democratic candidates run against former President Trump.”
However, it wondered whether this trend will be sustainable in the long term.
Last week, former President Donald Trump faced off against President Joe Biden in a debate that triggered concerns over the current president’s ability to lead the lines for the forthcoming November elections.
