Bitcoin (BTC) had an impressive 12% gain in June, closing the month on a positive note. Despite a last-minute dip due to a macro news event, Bitcoin managed to maintain a solid position. The data from Cointelegraph Markets Pro, TradingView, and CoinGlass confirms that the monthly close for Bitcoin was $30,465 on Bitstamp. This makes it the best June performance for Bitcoin since 2019.
Caution for July
While July has historically been a positive month for Bitcoin, some analysts are predicting a different outcome this year. Popular trader CryptoBullet expressed skepticism about the potential for further price upside in July. He believes that Bitcoin may fall below certain key moving averages. Despite the bullish monthly close in June, with Bitcoin testing the MA50 and bouncing back strongly to regain the EMA21, CryptoBullet thinks that the mid-term bullish rally is coming to an end. He suggests that Bitcoin could reach $35,000 to hunt for liquidity, but overall, the upward trend may be nearing its conclusion.
Concerns About Liquidity Hunting
The concept of liquidity hunting in the low $30,000 zone has gained popularity as a theory for price continuation. Trading suite DecenTrader has been tracking this theory and has highlighted the leveraged short positions that are concentrated around $35,000. This indicates that some traders are anticipating a downward move in Bitcoin’s price.
A Healthy Technical Retest
Despite the bullish monthly close, some analysts, like Rekt Capital, are advocating for a healthy technical retest of levels below $30,000 for Bitcoin. Rekt Capital believes that such a retest is necessary and could provide a solid foundation for future price movements. While Bitcoin’s price currently hovers around $30,500, Rekt Capital wonders what negative catalyst might emerge to facilitate this technical retest.
Furthermore, even if Bitcoin were to drop below the downside target of $29,250, analysts argue that it would not be considered out of the ordinary. They believe that Bitcoin is still well-positioned for upside potential in the long run.
In summary, while Bitcoin had a strong performance in June, there are concerns about its performance in July. Analysts suggest that the bullish rally may be coming to an end, and there is a possibility of a downward move in Bitcoin’s price. Despite these concerns, there is also optimism about a healthy technical retest that could lay the groundwork for future price growth. Overall, the future of Bitcoin remains uncertain, and traders and investors should proceed with caution in the coming month.