Bitcoin looks set to register its best July price performance for eight years and confirm a major bullish breakout in the process.Â
- Bitcoin is trading near $11,190 at press time and is up nearly 22% this month, according to data from CoinDeskâs Bitcoin Price index.
- The cryptocurrency now needs to hold above $11,145 until Fridayâs close (in UTC time) to confirm the biggest July gain (at 22%) since 2012, when prices rallied by 40%.Â
- If bitcoin closes below $11,050, the resulting monthly gain would be less than the 21% rise seen in July 2018.
- Julyâs double-digit monthly gain marks an end of a two-month-long price consolidation in the range of $9,000-$10,000.
- The cryptocurrency sprang into action amid the U.S. dollarâs broad-based sell-off on the foreign exchange market and goldâs rally to record highs above $1,950 per ounce.
- âBitcoin stands out this year against a backdrop of massive stimulus measures from central banks and a failing financial system,â Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, told CoinDesk.
- A resurgence of institutional participation and bearish sentiment around the dollar may power stronger gains over the coming months.
- The bullish trend looks strong with the cryptocurrency showing few signs of stress, despite increased miner sales observed earlier this week.
- Poolin, the biggest mining pool globally, transferred 435 bitcoin to exchanges on Wednesday, the biggest single-day outflow since May 3, according to Glassnode.
- Technical charts also paint a bullish picture.
- The monthly chart shows an upside break of a 2.5-year-long descending triangle.Â
- The breakout has exposed resistance located at $13,880 (June 2019 high).
- âBitcoinâs break above $10,500 marks a significant change in the direction of the market,â popular analyst Lark Davis tweeted on Wednesday.Â
- That possibility of a minor drop canât be ruled out, as bitcoin is looking overbought on the relative strength index.
Also read: Bitcoinâs Latest Rally May Have Staying Power, Exchange Flows Suggest
- Flash Crash: Bitcoin Price Slides by $1.4K in Minutes
- Why This Sex Industry Executive Loves Bitcoin
- Bitcoin Ends July at Highest Monthly Close Since 2017 Peak
- Market Wrap: Bitcoin Pushes to $11,450, DeFi Value Locked Now at $4B
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.