Bitcoin is poised for a strong recovery in July after a lackluster performance in June, during which it experienced a nearly 7% drop in price. According to data from Coinglass, which has been tracking Bitcoin’s monthly returns since 2013, June has historically seen a slump of 0.35% in the price of Bitcoin. However, whenever June has ended on a downward trend, the following month has witnessed a significant comeback, with Bitcoin gaining an average of 7.42%.
The trend of strong July performance following a decline in June has been noted by Memecoin analyst Murad, who pointed out that Bitcoin has seen minimum gains of 28% in the first few weeks of every July for the past six years. This historical data suggests that Bitcoin is likely to perform strongly in July once again.
However, some analysts are predicting that July may be more challenging than usual for Bitcoin. The sale of a sizable amount of Bitcoin by the German government and the upcoming Mt. Gox repayments are expected to put pressure on the price of Bitcoin. The Mt. Gox repayments will see approximately $8.5 billion in Bitcoin paid back to creditors, but only $4 billion will hit the spot BTC market.
Despite these potential challenges, Jonathan de Wet, the chief investment officer at digital asset trading firm ZeroCap, believes that Bitcoin will remain strong in the low to mid $60,000 range. However, he also anticipates a possible drop to the “key support” level of around $57,000 in the coming weeks as the Mt. Gox creditor repayments take effect.
It is worth noting that November has historically been Bitcoin’s best-performing month, with an average monthly gain of 46.81% since 2013.