Bitcoin Traders Bullish on July Performance Following S&P 500 Trend

Bitcoin traders are optimistic about the cryptocurrency's performance in July, anticipating that it will follow the trend of the S&P 500 index and reach new all-time highs. According to historical data, July has been a profitable month for the S&P 500, with ten consecutive "green" months in a row. This trend is expected to benefit Bitcoin, as the cryptocurrency has shown a tendency to track the performance of traditional stock markets.

Traders have noted that while Bitcoin's price performance in May and June has been mixed, July has generally fared better with maximum losses under 10%. This suggests that Bitcoin is likely to experience solid gains over the coming month, mirroring the performance of the S&P 500. According to the analyst's forecast, Bitcoin is expected to end July firmly bullish, with historical data favoring strong risk-asset returns during this period.

Despite the optimistic outlook, Bitcoin started July on a lackluster note, dropping to month-to-date lows under $106,500. However, traders remain unfazed by this initial price action, suggesting that it is nothing to worry about. They point out that the start of a new month and quarter often sees choppy price movements, which eventually resolve in a clear direction. Traders advise giving the market some time to play out and watching for confirmations before making any significant moves.

Some traders have identified key support and resistance levels for Bitcoin. For instance, a band of bid support is in place starting at $106,200, with shorts above $108,000 still untouched. Additionally, Bitcoin has formed a Double Top and a Double Bottom pattern within the consolidating range of $101,000 to $109,000. This suggests that the internal support/resistance could be tested again before breaking the $109,000 range high.

Overall, the consensus among traders is that Bitcoin is on the edge of breaking out and is likely to match the S&P 500 for new all-time highs in July. While the initial price action may be weak, traders are confident that the cryptocurrency will follow the historical trend of strong performance in July. As always, investors are advised to conduct their own research and consider the risks involved before making any investment decisions.