Bitcoin's July Gains Mask Bearish Market Sentiment
Bitcoin's recent 7% gains in July may be masking an extremely skeptical market. The cryptocurrency closed the month at $62,800, but its higher-timeframe price structure remains bearish.
The support zone established between $64,000 and $65,000 in March and April has been flipped to resistance. This development suggests that the market is not as bullish on Bitcoin as some might think.
However, crypto analyst Axel Adler Jr. notes that the current price is still 39% above the historical median trajectory. Measured from the cycle's peak, the expected market price now is $45,347, which is lower than the current price but not necessarily a target for Bitcoin to fall to.
Other analysts warn of potential challenges ahead. Ali Martinez points out that Bitcoin has made negative returns in August since 2022, averaging a 10% decline on the charts. Additionally, the TD Sequential printed a sell signal ahead of this month, which has preceded market setbacks in recent years.