As monthly close approaches, several indicators point to bullish price action for Bitcoin price
Bitcoin price is approaching the monthly candlestick close with strength as it holds above a significant area of support. At the time of writing, BTC is changing hands at $23,421.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price 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 U.S. 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.
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 toward $31,340 as IntoTheBlock’s Global In/Out of the Money model shows little to no resistance ahead.
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.
While these developments project a steady uplift, miners are not completely out of the woods yet. In fact, at the time of writing, the total miner revenue continued to trade downhill.
Nonetheless, IF Bitcoin continues to recover and difficulty declines, miners might continue their operations until the next bull market appears. Until then, BTC holders need to showcase their support, despite everything, as remains the case right now. Here, it’s worth pointing out that the number of wallets with a balance of 10,000+ BTC has increased significantly since the beginning of the month.
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