In a significant milestone, Bitcoin (BTC) closed June with its highest monthly close since inception, setting the stage for a bullish sentiment in July. The flagship coin surged by 4 percent on July 2, reaching approximately $109,420 during the mid-North American trading session.
Despite this positive movement, BTC price has not completely dispelled the midterm bearish sentiment. As reported by Coinpedia, the cryptocurrency faced bearish pressure due to a high volume of short leverage trades and consistently negative funding rates.
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Factors Affecting Bitcoin Price in July
Coinpedia highlighted that BTC price has been closely correlated with the exponential growth of the global money supply (M2). The U.S. government’s increasing budget deficit is expected to boost the money supply, a factor that bodes well for Bitcoin’s outlook.
July’s performance for BTC will be heavily influenced by U.S. spot BTC ETFs. Notably, BlackRock’s IBIT and other U.S. spot BTC ETFs have seen a significant cash inflow of approximately $12.8 billion over the past three months.
Additionally, monitoring the performance of major companies that have adopted Bitcoin treasury management strategies will provide insights into BTC price trends. The growing demand from institutional investors has led to a decrease in available coins on centralized exchanges, exacerbating the supply-demand dynamics.
Midterm Price Targets
Following the recent surge, BTC price has broken above a crucial resistance logarithmic trendline. If buyers can maintain levels above $109k in the coming weeks, the flagship coin is poised to rally towards a new all-time high.
According to Bitwise CIO Matt Hougan, BTC price could surpass its all-time high in July due to easing geopolitical tensions and increased institutional investor demand. The bullish sentiment is further supported by Bitcoin’s historical trend of recording gains in July over the past decade.
However, the midterm bullish outlook will be negated if BTC price retraces towards the lower boundary of the descending channel, within the support range of $92k to $96k.
