Bitcoin (BTC) cheated breakout to fresh six-week highs on July 31 as the showdown for both the weekly and monthly closes approaches.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bart Simpson greets traders at Bitcoin’s monthly close
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD canceled all of its gains early in the weekend, dropping from $24,670 to $23,555 in hours.
The resulting chart structure was very familiar to long-term market participants, which created the Bart Simpson look on the hourly timeframes.
However, the liquidations remained manageable, totaling $150 million in cryptocurrencies in the 24 hours at the time of writing, according to data from analytics source Coinglass – lower than in previous days.
Cryptocurrency filter chart. Source: Coinglass
For popular trader and analyst Rekt Capital, there was no reason to believe that the close of the upcoming weekly candlestick would confirm that Bitcoin re-established a major trend line as support after weeks of failure.
Looking ahead, not everyone was convinced that the current market strength had much room to continue.
In one of the various Twitter posts over the weekend, Materials Scientist, creator of the analytics resource for the on-chain analytics resource, looked at funding rates on derivatives platforms that are becoming increasingly positive, indicating a very strong consensus that prices could rise unchecked.
“Negative financing is almost completely reset, just as it did in late March. We may see positive financing for some alternatives soon,” he wrote:
“I think there’s one last bang in the shaded area before the bear’s rally fades.”
However, BTC/USD was still on track for a monthly gain of around 19% for July, in stark contrast to any other month of the year so far.
According to data from Coinglass, July returns are poised to be the best bitcoin since its all-time high in 2021.
Bitcoin monthly returns chart (screenshot). Source: Coinglass
One of the ‘biggest bull markets’ can now wait for Bitcoin
Other views paid little attention to the possibility of a new correction in the short term.
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Given the likely performance in the second half of 2022, Mike McGlone, chief commodity strategist at Bloomberg Intelligence, leaves little doubt about how Bitcoin in particular will perform.
He noted on social media that insinuations that the Fed will tackle rate hikes on a “meeting-by-meeting basis,” as President Jerome Powell said this week, “may be pivotal to #Bitcoin’s resumption of its tendency to outperform most assets.” “.
Added about the 200-week trend line:
“I see risk versus reward skewed favorably for one of the biggest bull markets in history.”
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