Crypto market capitalization fell 14% in June, from a $2.78 trillion high early in the month to around $2.4 trillion by the end of it.
However, June has usually been bearish, and if history rhymes, July could see a market recovery.
On June 30, market analyst Murad Mahmudov posted a chart on X showing previous local market bottoms in June, followed by a bullish recovery in July stretching back to 2018.
Reason 1 to be bullish for July on this last day of bearish June pic.twitter.com/E5T4Qr2Rki
— Murad (@MustStopMurad) June 30, 2024
Big Bitcoin Gains in July?
June 2023 saw the market cap tank to just over $1 trillion. However, there was a recovery in July, as markets gained more than 22% by mid-month.
Nevertheless, they remained range-bound until the end of October, and similar sideways action has been predicted for this year.
“Bitcoin is on the cusp of challenging the June downtrend for a breakout,” posted analyst ‘Rekt Capital’ on X on June 30.
They added that BTC will need a daily close above the June downtrend to kickstart a breakout.
The asset is currently forming a higher low and “doing all the right things to form a cluster of price action at this range low at $60,600,” the analyst said before adding:
“This cluster could develop over the whole month of July. But ultimately, it exists to prepare Bitcoin for a rally back to the range high at $71,500.”
BTC prices have gained almost 4% over the weekend, hitting an intraday high of $63,700 during Asian trading on Monday.
It also appears to have successfully retested the old major resistance as new support on the quarterly timeframe, said ‘Rekt Capital.’
However, the Mt. Gox repayments, estimated at more than $8 billion worth of BTC, are set to begin in early July, which could hamper the asset’s performance.
M2 Money Supply Expansion
It has also been observed that the M2 Money Supply, which has been linked to crypto market cycles, is expanding again. This would be very good for crypto as more money in the system leads to greater liquidity and investment into higher-risk assets.
M2 is a measure of the money supply, which includes cash, checking deposits, and easily convertible capital. When it increases, it suggests that the central bank is printing more money, leading to fiat devaluation concerts, which is another driver of investments in store-of-value assets.
ATTENTION: M2 money supply has is now expanding pic.twitter.com/5PQJbCMDms
— Game of Trades (@GameofTrades_) June 30, 2024
The post Analysts Predict Bullish July to Follow Bearish June for Bitcoin, Here’s Why appeared first on CryptoPotato.
