Bitcoin Heads For “One Of The Biggest Bull Cycles In History” After Gains Of Around 20% In July

Oh Bitcoin (BTC) confirmed a breakout to new six-week highs on July 31, as the weekly and monthly closes approach.

BTC/USD (Bitstamp) 1 hour chart. Source: Trading View

‘Bart Simpson’ Greets Traders at BTC’s Monthly Close

data from Cointelegraph Markets Pro It’s a yes TradingView showed that BTC/USD reversed all of its gains earlier in the weekend, dropping from $24,670 to $23,555 within hours.

The resulting chart structure was very familiar to “old school” traders: a “Bart Simpson” structure formed on the shorter time frame charts.

Settlements, however, remained manageable, with the cryptocurrency cross count totaling $150 million within 24 hours at the time of writing, according to data from the analytics resource. coin glass – less than the previous days.

Cryptocurrency settlement table. Source: Coinglass

For popular trader and analyst Rekt Capital, there is now reason to believe that the upcoming weekly close would confirm that Bitcoin has re-established an important trendline as support after weeks of failure.

Looks like #BTC has successfully retested the 200 week moving average as support $BTC #Crypto #Bitcoin

—Rekt Capital (@rektcapital)

Looking to the future, however, not everyone was convinced that the current market strength still had much room to continue.

In one of many Twitter posts over the weekend, Material Scientist, creator of the analytics tool in chain Material Indicators noted that funding rates on derivatives platforms are becoming increasingly positive, indicating a very strong consensus that prices could rise unchecked.

“Negative funding has been almost completely reset, like at the end of March. We may even see positive funding on some altcoins soon,” he wrote he.

“I think there is one last snap in the shaded area before the bear rally fades away.”

However, the BTC/USD pair was still on track to post monthly gains of around 19% in July, a stark contrast to any other month of the year so far.

According to data from Coinglass, July returns could be Bitcoin’s best since all-time highs in 2021.

Bitcoin monthly returns chart (screenshot). Source: Coinglass

One of the “biggest bull cycles” may be waiting for Bitcoin

Other analysis paid little attention to the prospect of another short-term correction.

Keeping an eye on Bitcoin’s potential performance in the second half of 2022, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, left no doubt about the price development of BTC in particular.

Hints that the US Federal Reserve is pricing interest rate hikes in the US economy “meeting by meeting”, as Fed Chairman Jerome Powell said this week, “could mark the pivot for # Bitcoin is resuming its trend of outperforming most assets,” argued on social networks.

“July marked the biggest pullback in Bitcoin history to its 100 and 200 week moving averages, with clear implications for a rally,” he added of the 200 week trendline.

“I see the risk-reward ratio leaning favorably toward one of the biggest bull cycles in history.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

READ MORE

Leave a Comment