Title : Bitcoin due ‘one of greatest bull markets’ as July gains circle 20%
Aug 01, 2022 03:40AM ET
Bitcoin's future price action may be much more bullish than the short-term charts suggest, says Mike McGlone of Bloomberg Intelligence.
On July 31, Bitcoin (BTC) staged a breakout to new six-week highs on the weekly and monthly closes.
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD erased all of its gains from earlier in the weekend, falling from $24,670 to $23,555 in just a few hours.
The resulting chart structure was all too familiar to long-term market participants, creating a "Bart Simpson" shape on hourly time frames.
Nevertheless, settlements remained manageable, as the cross cryptocurrency count amounted to $150 million in the 24 hours to the time of writing, according to data from analytics resource Coinglass, less than in previous days.
For popular trader and analyst Rekt Capital, there was no reason to believe that the upcoming weekly candle close would confirm that bitcoin had re-established a key trendline as support after weeks of failure.
Looking ahead, however, not everyone was convinced that the current market strength had much room left to continue.
In one of several Twitter posts over the weekend, Material Scientist, creator of the blockchain analysis resource Material Indicators, noted that funding rates on derivatives platforms were turning increasingly positive, indicating a strong consensus that prices could rise unchecked.
Nevertheless, BTC/USD was on track to deliver approximately 19% monthly gains in July, a significant difference from any other month of the year so far.
According to Coinglass data, July's returns were even poised to be Bitcoin's best since the all-time highs of 2021.