- Bitcoin rose nearly 18% in July.
- Several indicators point to bullish price action for the top cryptocurrencies as the monthly close approaches.
- For Bitcoin to approach $31,340, it needs to stay above $20,650.
share this article
Bitcoin is approaching the monthly candlestick with force as it is above a key area of support.
Bitcoin will be closed in green july
Bitcoin is about to close July green while one technical indicator looks poised to flash a buy signal.
Major cryptocurrencies surged nearly 18% in July after enduring a brutal 56% correction in the second quarter. I’m here. The US economy has plunged into a so-called ‘technical recession’ after two consecutive quarters of negative growth, indicating investors believe weak macroeconomic conditions have been priced in.
From a technical standpoint, Bitcoin is holding near the 50-month moving average. On the other hand, the Tom DeMark (TD) Sequential indicator looks like it’s about to offer a buy signal in the form of red 9 candlesticks on the monthly chart. A bullish formation anticipates one to four candlestick rises per month or the start of a new uptrend.
Trading history shows the importance of the 50-month moving average. Approximately 3.67 million addresses bought his 2.47 million BTC at an average price of $20,650. Bitcoin could validate its optimistic outlook if this massive demand wall persists.
IntoTheBlock’s global in/out-of-the-money model offers little to no resistance going forward, so further buying pressure around the 50-month moving average could push Bitcoin higher to $31,340.
Note that a loss of the $20,650 support level could lead to a significant drop. A drop below this interest area could lead to panic among investors and potential selling as market participants try to avoid further losses. A potential sell could push Bitcoin to the next key area of support, which is around $11,600.
Disclosure: At the time of writing, the author of this work owned BTC and ETH.
For more important market trends, subscribe to our YouTube channel for weekly updates from Lead Bitcoin Analyst Nathan Batchelor.