Bitcoin looks set to register its best July price performance for eight years and confirm a major bullish breakout in the process.
- Bitcoin is trading near $11,190 at press time and is up nearly 22% this month, according to data from CoinDesk’s Bitcoin Price index.
- The cryptocurrency now needs to hold above $11,145 until Friday's close (in UTC time) to confirm the biggest July gain (at 22%) since 2012, when prices rallied by 40%.
- If bitcoin closes below $11,050, the resulting monthly gain would be less than the 21% rise seen in July 2018.
- July's double-digit monthly gain marks an end of a two-month-long price consolidation in the range of $9,000-$10,000.
- The cryptocurrency sprang into action amid the U.S. dollar’s broad-based sell-off on the foreign exchange market and gold’s rally to record highs above $1,950 per ounce.
- “Bitcoin stands out this year against a backdrop of massive stimulus measures from central banks and a failing financial system,” Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, told CoinDesk.
- A resurgence of institutional participation and bearish sentiment around the dollar may power stronger gains over the coming months.
- The bullish trend looks strong with the cryptocurrency showing few signs of stress, despite increased miner sales observed earlier this week.
- Poolin, the biggest mining pool globally, transferred 435 bitcoin to exchanges on Wednesday, the biggest single-day outflow since May 3, according to Glassnode.
- Technical charts also paint a bullish picture.
- The monthly chart shows an upside break of a 2.5-year-long descending triangle.
- The breakout has exposed resistance located at $13,880 (June 2019 high).
- “Bitcoin’s break above $10,500 marks a significant change in the direction of the market,” popular analyst Lark Davis tweeted on Wednesday.
- That possibility of a minor drop can't be ruled out, as bitcoin is looking overbought on the relative strength index.
Also read: Bitcoin’s Latest Rally May Have Staying Power, Exchange Flows Suggest