Bitcoin Heads for Bullish Monthly Close

Key Takeaways:

  • Bitcoin surged by nearly 18% in July.
  • As the monthly close approaches, several indicators point to bullish price action for the top crypto.
  • Bitcoin needs to hold above $20,650 to advance towards $31,340.

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Bitcoin is approaching the monthly candlestick close with strength as it holds above a significant area of ​​support.

Bitcoin to Close July in the Green

Bitcoin is about to close July in the green while one technical indicator looks ready to flash a buy signal.

The leading cryptocurrency surged by nearly 18% in July after enduring a brutal 56% correction in the second quarter. The upward price action seen over the past month coincides with improving market sentiment. Although the US economy has entered a so-called “technical recession” after two consecutive quarters of negative growth, investors are indicating that they believe that the weak macroeconomic conditions have been priced in.

From a technical perspective, Bitcoin is holding around the 50-month moving average. Meanwhile, the Tom DeMark (TD) Sequential indicator looks like it’s about to present a buy signal in the form of a red nine candlestick on the monthly chart. The bullish formation anticipates a one to four monthly candlesticks upswing or the beginning of a new uptrend.

Bitcoin US dollar price chart
BTC/USD monthly chart (Source: TradingView)

Transaction history shows the importance of the 50-month moving average. Roughly 3.67 million addresses have purchased 2.47 million BTC at an average price of $20,650. If this significant demand wall continues to hold, Bitcoin has a chance of validating the optimistic outlook.

Further buying pressure around the 50-month moving average could push Bitcoin towards $31,340 as IntoTheBlock’s Global In/Out of the Money model shows little to no resistance ahead.

Bitcoin Transaction History:
Bitcoin’s GIOM (Source: IntoTheBlock)

It is worth noting that a loss of the $20,650 support level could lead to a major downturn. Dipping below this interest area could cause panic among investors, leading to potential sell-offs as market participants look to avoid further losses. The potential sell-off could push Bitcoin to the next crucial area of ​​support, which sits at around $11,600.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.

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