Bitcoin (BTC) experienced a promising 12% gain in June, leading many bulls to believe that the cryptocurrency was on an upward trajectory. However, one forecast suggests that the good times may soon fade. In a recent tweet, popular trader CryptoBullet expressed doubts about the potential for further price upside in July. Despite a last-minute dive caused by a macro news event, Bitcoin managed to close out June on a positive note, with a monthly close of $30,465 on Bitstamp. While these levels have held steady into the weekend, historical data shows that July may not be as favorable for BTC as some may hope.
Bitcoin’s price action in July has never lost more than 10% throughout its history. This statistic, combined with the bullish June performance, may lead one to believe that the cryptocurrency will continue its upward trend. However, CryptoBullet argues that “common sense” suggests BTC/USD will fall below certain key moving averages. Despite the strong bounce-back and the successful regain of EMA21, the trader believes that the mid-term bullish rally is coming to an end.
The theory of liquidity hunting in the low $30,000 zone remains popular among Bitcoin analysts. DecenTrader, a trading suite, has been tracking leverage short positions that are stacked towards $35,000. This suggests that there is a possibility of price continuation in the near future. However, a cautiously optimistic Rekt Capital highlights the need for a healthy technical retest of levels below $30,000, despite the bullish monthly close. The trader wonders what negative catalyst will emerge to facilitate this retest, indicating a potential decline in BTC price.
Further analysis of the Bitcoin market indicates that even if the price were to drop below the downside target, it would not be considered “out of the ordinary.” Rekt Capital argues that BTC is overall well-positioned for upside potential. However, the trader’s emphasis on a healthy technical retest suggests that Bitcoin may experience a temporary setback before resuming its upward trajectory.
While Bitcoin experienced a positive performance in June, it is important to critically evaluate the factors that may affect its price in the coming months. The forecast of a potential decline in July raises questions about the sustainability of the recent surge. Traders and analysts, such as CryptoBullet and Rekt Capital, offer different perspectives on Bitcoin’s future trajectory, highlighting the uncertainty that surrounds the cryptocurrency market.
The June surge in Bitcoin’s price may have initially excited bulls, but caution is advised as we enter the month of July. Critical analysis of historical data, liquidity hunting theories, and technical retests indicate that Bitcoin may soon face challenges that could hinder its upward momentum. However, it is essential to remember that the cryptocurrency market is unpredictable, and it remains to be seen how Bitcoin will navigate through these uncertain times.
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