As a researcher with a background in financial markets and experience tracking the crypto market, I find the current market conditions intriguing. The recent decline in crypto market capitalization in June, followed by historical patterns of recovery in July, is an interesting trend to observe. Murad Mahmudov’s analysis of previous market bottoms in June leading to bullish recoveries in July is a compelling reason for optimism.
The cryptocurrency market witnessed a significant decline in June, with its total value falling approximately 14% from a peak of around $2.78 trillion at the beginning of the month to roughly $2.4 trillion by its close.
However, June has usually been bearish, and if history rhymes, July could see a market recovery.
Market analyst Murad Mahmodov shared a chart on X via his post on June 30, highlighting past market lows in June and subsequent bullish market recoveries that occurred in July since the year 2018.
Reason 1 to be bullish for July on this last day of bearish June
— Murad (@MustStopMurad) June 30, 2024
Big Bitcoin Gains in July?
In June 2023, the market capitalization plummeted below $1.1 trillion. Yet, markets bounced back in July, recording a significant surge of over 22% by mid-month.
Despite this, their prices stayed relatively stable throughout October, and it’s anticipated that they may continue to fluctuate minimally this year.
“Analyst ‘Rekt Capital’ predicts that Bitcoin could soon surpass the decline trend from June on X, as indicated on June 30.”
They added that BTC will need a daily close above the June downtrend to kickstart a breakout.
As a researcher observing the market trends, I notice that the asset is exhibiting signs of a potential higher low formation. It’s creating a series of price actions around the range low of $60,600, suggesting the possibility of a cluster or support forming at this level.
“During the entire month of July, this grouping has the potential to emerge. Its primary function, however, is to ready Bitcoin for a rebound towards the peak price of $71,500.”
Over the past weekend, Bitcoin prices experienced a significant surge of around 4%, reaching a peak of $63,700 in Asian markets during Monday’s trading session.
As a market analyst, I’ve observed that the resistance level, which had previously caused significant obstacles for the price movement, has now been tested again and seemingly transformed into a new source of support on the quarterly chart.
As an analyst, I would express it this way: The upcoming repayments from Mt. Gox, valued over $8 billion in Bitcoin, are scheduled to commence in early July. This significant outflow of Bitcoins from the market may negatively impact its price and performance.
M2 Money Supply Expansion
Observers have noted that the M2 Money Supply, known to correlate with crypto market trends, is expanding once more. Such growth is beneficial for cryptocurrencies, as an increased money supply results in heightened liquidity and increased investment in riskier assets.
M2 represents the total amount of money in circulation, encompassing cash, checking deposits, and funds that can be swiftly converted into cash. An uptick in M2 signifies that more money is being introduced into the economy by the central bank, which may result in depreciation of fiat currency value, motivating investors to seek refuge in assets with intrinsic worth, such as precious metals or cryptocurrencies.
ATTENTION: M2 money supply has is now expanding
— Game of Trades (@GameofTrades_) June 30, 2024
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2024-07-01 17:22