After closing June in the highest monthly close since inception, Bitcoin (BTC) price has signaled bullish sentiment in July. The flagship coin surged 4 percent on Wednesday, July 2, to trade at about $109,420 during the mid-North American trading session.
However, BTC price has not fully invalidated the midterm bearish sentiment. As Coinpedia reported, BTC price faced midterm bearish sentiment caused by significant cumulative short leverage trades and consistent negative funding rates.
Factors that Will Impact Bitcoin Price Action in July
As Coinpedia has pointed out, BTC price has gradually mirrored the exponential growth of the global money supply (M2). The need by the U.S. government to increase its budget deficit implies more money supply in the near term, which is extremely bullish for Bitcoin.
The performance of BTC in July will be heavily influenced by the performance of the U.S. spot BTC ETFs. Led by BlackRock’s IBIT, the U.S. spot BTC ETFs recorded a net cash inflow of about $12.8 billion in the last three months.
Meanwhile, monitoring the performance of major companies, which have implemented a Bitcoin treasury management plan, in July will help determine BTC price action. Furthermore, the rising demand from institutional investors has caused a sharp decline of disposable coins on centralized exchanges thus exaggerating the supply vs demand shock.
Midterm Targets
BTC price has rallied above a crucial resistance logarithmic trendline following Wednesday’s pump. The flagship coin is now well-positioned to rally towards a new all-time high if the buyers maintain above $109k in the coming weeks.
According to Bitwise CIO Matt Hougan, BTC price could rally beyond its ATH in July fueled by easing geopolitical tension and rising demand from institutional investors. The bullish sentiment in July is also bolstered by the fact that BTC has majorly recorded gains in more Julys in the last ten years.
The midterm bullish sentiment will, however, be invalidated if BTC price retraces towards the lower border of the falling channel, around the support range between $92k and $96k.
