Bitcoin is set to make a recovery in July following a disappointing performance in June, according to analysts. The price of Bitcoin dropped by 7% last month, which is in line with historical data that shows Bitcoin typically underperforms in June with a small decline of 0.35%. However, July has historically been a strong month for Bitcoin, often compensating for the June decline.
Crypto market analyst Ali Martinez has highlighted that Bitcoin tends to bounce back strongly in July after a negative June. Historical data shows that Bitcoin has gained an average of 7.42% in July following a decline in June. Additionally, Bitcoin has recorded at least an 8% gain in seven of the past eleven Julys, indicating a mid-year recovery pattern.
Another analyst, known as Murad, has reiterated this view on social media, stating that Bitcoin has consistently achieved minimum gains of 28% in the first few weeks of July over the past six years. This positive historical trend has fueled optimism among Bitcoin investors, who are hoping for similar performance this year.
However, several factors could make July more challenging for Bitcoin compared to previous years. Analysts have expressed caution regarding significant Bitcoin sales by the German government and the upcoming repayments from the defunct Mt. Gox exchange. The Mt. Gox repayments, which are expected to begin in July, involve returning approximately $8.5 billion worth of Bitcoin to creditors. This event could potentially increase selling pressure in the market.
Despite these concerns, some analysts believe that the impact of the Mt. Gox repayments may be less severe than expected. It is likely that only $4 billion of the $8.5 billion will enter the spot market, which could alleviate some of the downward pressure on Bitcoin’s price.
Jonathan de Wet, the Chief Investment Officer of digital asset trading firm ZeroCap, has noted that Bitcoin has been trading steadily between below $60,000 and $65,000 despite various adversities. He expects Bitcoin to maintain this range but warns that the price could drop to the key support level around $57,000 due to the Mt. Gox repayments.
While November has historically been Bitcoin’s strongest month with an average monthly gain of 46.81% since 2013, July is generally favorable for the cryptocurrency. However, upcoming challenges, such as the Mt. Gox repayments, could test this trend.
Disclaimer: The information in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.