Bitcoin (BTC), Worst Month in 4 Years...July's 'Salvation Formula' Put to the Test

▲ Dollar (USD), Bitcoin (BTC)/AI Generated Image

Bitcoin (BTC) had its worst month in four years. As it attempts a July rebound after a 20.5% plunge in June, breaking past $65,000 has emerged as a new battleground.

According to crypto media outlet CryptoPotato on July 5 (local time), Bitcoin ended four out of six months this year with a decline. The 20.5% drop in June marked its weakest monthly performance since June 2022.

The sharp decline began in mid-May. Bitcoin surpassed $82,000 but failed to maintain its upward momentum. Subsequently, it lost approximately $25,000 in a matter of weeks and plummeted below $70,000 in June. It fell below $60,000 several times for the first time since before the US presidential election at the end of 2024.

However, July's past performance is favorable for Bitcoin. Out of the last 13 Julys, the price increased in 9 of them. In particular, all Julys immediately following a declining June ended with gains. This July, Bitcoin also showed a rebound, briefly reaching $63,000 over the weekend.

Variables remain that must be overcome for the rebound to continue. The record net outflows from Bitcoin spot ETFs must stop, and the sluggish real demand from US and Korean investors, as revealed by the Coinbase Premium indicator, must improve. Easing tensions in the Middle East and resolving uncertainties surrounding the US midterm elections were also cited as key variables.

Crypto analyst Rekt Capital highlighted the 50-month exponential moving average located at approximately $65,000. He analyzed that Bitcoin would attempt to turn this price level into a new resistance in July. With Bitcoin regaining $60,000 and showing several bullish signals, the market's attention is now turning to the next major breakout zone.

[Article Key Summary]

-Bitcoin plunged 20.5% in June, marking its worst monthly performance in four years since June 2022.

-Out of the last 13 Julys, the price increased in 9 of them, and all Julys immediately following a declining June ended with gains.

-With net outflows from Bitcoin spot ETFs and sluggish demand from US and Korean investors cited as remaining variables, the $65,000 level is gaining attention.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*