As July drew to a close, Bitcoin’s outlook contrasted that of the previous months, showing a dominant rebound. With a positive return of 19.15% for July, it broke to new six-week highs. Bloomberg intelligence analyst Mike McGlone believes that Bitcoin (BTC) could be due for “one of the greatest bull markets in history at a relatively discounted price” as seen in a recent tweet.
And though short-term charts may indicate otherwise, Bitcoin’s future price action trajectory may be more bullish than initially expected. Recent sentiment across the industry has been split, with some believing the crypto winter has bottomed out while others think there is still another fall to come. But regardless of which side people are on, one thing is for certain: it most markedly improved from before.
However, the main uncertainty is now about whether this current market strength has enough momentum to keep pushing upwards. A month or two earlier, Bitcoin dipped below the 200 MA (moving average) but has since stabilised and is looking to reestablish a key support level.
With the weekly close, Bitcoin seems to have successfully settled just above the 200 MA, but this does not necessarily mean that Bitcoin has confirmed a key trendline having just come from weeks of failure.
McGlone has made comparisons of the current market state to that of the stock market situation of 2000-2002 when the then-technological wonder of the internet spread through the world (also known as the dotcom bubble). It was only when the bubble burst and the market tumbled that the weakest participants were able to be weeded out.
From there, the market was able to resolidify and the market segment was able to cement itself with a stronger foundation.
According to McGlone, he believes that’s what the industry just went through in the first half of 2022 – a purge of the excesses. The bear market must be embraced in order to attain a long-term goal of mass web3 and crypto adoption and acceptance. The signs of recovery are there, and the risk-to-reward ratio is tilted favorably but as those in the crypto industry know, anything can happen.
Disclaimer: This is not financial advice, you should conduct your own research when making financial decisions.
