Bitcoin Due For ‘One Of The Biggest Bull Markets’ As July Circles Up 20%

by · August 11, 2022

Bitcoin (BTC) forged a breakout to new six-week highs into July 31 as a settlement for both the weekly and monthly closes approached.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

“Bart Simpson” greets traders to BTC monthly close

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD canceled out all the gains from early weekend, falling from $24,670 to $23,555 in hours.

The resulting chart structure was all too familiar to long-term market participants, creating a “Bart Simpson” shape on hourly time frames.

Liquidations remained manageable, however, with cross-crypto totals totaling $150 million in the 24 hours at the time of writing, according to data from analytics resource Coinglass — less than in previous days.

Crypto liquidation chart. Source: Coinglass

For popular trader and analyst Rekt Capital, there was no reason to believe that the upcoming weekly candle would confirm that Bitcoin had re-established a central trend line 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 chain analysis resource Material Indicators, saw funding rates on derivatives platforms becoming increasingly positive, indicating too strong a consensus that prices could rise uncontrollably.

“Negative funding is almost completely reset, just like at the end of March. We may even see positive funding on some options soon,” he wrote:

“I think it’s one last dip into the shadowy area before the bear rally fizzles out.”

Nevertheless, BTC/USD was still on track to deliver roughly 19% monthly gains for July, in stark contrast to every other month of the year so far.

According to data from Coinglass, July’s return was even poised to be Bitcoin’s best since its 2021 highs.

Bitcoin Monthly Returns Chart (Screenshot). Source: Coinglass

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

Other perspectives paid little attention to the prospect of another near-term correction.

Related: Historically Accurate Bitcoin Metrics Exit Buy Zone in ‘Unprecedented’ 2022 Bear Market

Mike McGlone, senior commodity strategist at Bloomberg Intelligence, saw potential performance in the second half of 2022, leaving little doubt how Bitcoin in particular would fare.

Hints that the Federal Reserve will raise interest rates on a “meeting-by-meeting basis,” according to Chairman Jerome Powell this week, “could mark the key for #Bitcoin to resume its tendency to outperform most assets.” argued on social media.

“July marked the steepest discount in Bitcoin history to its 100- and 200-week moving averages, with implications for its recovery,” he added of the 200-week trend line:

“I see risk vs. reward tilted favorably for one of the biggest bull markets in history.”

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