Blessing of July: Could Bitcoin Reach $36,000 in the Coming Month?

The month of June is coming to a fast end and although the price of bitcoin remains in an uptrend, it is still well below expectations. However, all hope is not lost as the market enters the month of July, which has historically been a bullish month for digital assets. So the question now is, will bitcoin finally be able to break the $36,000 level in the new month?

July Could Be The Answer For Bitcoin

In a report dated June 26, Marcus Thielen, head of research at Matrixport, pointed to a possible rally for bitcoin in the month of July. The prediction is not unfounded as bitcoin has historically performed well during this month. Although there have been years when this was not true, the years in which it was more so than the latter.

Thilen points to the years 2020, 2021 and 2022, all of which saw the digital asset grow by double digits. Additionally, over the past decade, the price of BTC in July has seen a significant correction in a total of seven years, while it has failed to rally in only three years.

In view of this, the research chief paints a bullish picture for the cryptocurrency, according to which it could reach $36,000. This figure is based on the fact that over the past three years, the price of BTC has increased by an average of 20% in July, so another 20% increase for BTC from its current level would propel it above $36,000.

Furthermore, the outlook for the year-end 2023 also remains very bullish as Thelen also sees a potential rally to $45,000 for the digital asset. “Bitcoin goes up 10,000 points, only goes back 5,000 points and then goes up another 10,000 points (until we reach $45,000 by the end of the year),” said the head of research.

July is a historically bullish month for BTC | Source: Matrixport

He added that: “We have seen a rally from around $15,000 to $25,000 due to the US banking crisis and then a drop to $20,000, then an additional 10,000 point increase to $30,000 and a selloff to $25,000 due to the Binance-SEC lawsuit . We are now on our way to $35,000 as the approval of the Bitcoin ETF is expected to bring more US institutions and US retail into the region.’

US Investors Are Leading the BTC Rally

As reported by NewsBTC last week, US investors are participating more in the crypto market, especially when it comes to bitcoin, and this increased participation from the sector is fueling the digital asset’s rally so far.

BTC shows strength above $30,000 | Source: BTCUSD on TradingView.com

The Matrixport report shows that most of the BTC rally has happened during US trading hours. To put this into perspective, the BTC price is up 16% during US trading hours, up 1% during European trading hours, and down 7% during Asian trading hours.

This suggests that US investors are currently driving the rally, driven by renewed positive sentiment around BlackRock and a number of asset managers filing for bitcoin ETFs in the US. Thilen highlighted that this is “a sign that US institutions are buying bitcoin while other regions are less active. The claim that ‘crypto is over in the US’ appears to be a misconception.”