Bitcoin recovery gains pace in July
- Bitcoin (CRYPTO:BTC) has rebounded from about US$57,700 to above US$64,000 this month.
- CryptoQuant said stronger seasonal demand and improving market activity are supporting the recovery.
- The firm said the market remains bearish and stronger demand is needed for a lasting rally.
Bitcoin (CRYPTO:BTC) has climbed from about US$57,700 to above US$64,000, with CryptoQuant saying July's seasonal strength is helping the recovery.
CryptoQuant said July has often been Bitcoin's strongest month during bear markets, with gains of 20% in 2018 and 17% in 2022.
“A move back into positive territory would confirm that the demand engine is re-igniting,” CryptoQuant analysts said.
The firm said Bitcoin demand has improved after falling sharply in June, while demand from futures traders has turned slightly positive and spot demand is contracting more slowly.
CryptoQuant said selling pressure in the United States has eased, with the Coinbase Premium Index recovering from deeply negative levels as institutional demand stabilised.
Despite the rebound, CryptoQuant said its Bull Score Index remains at 20, well below the 60 level it believes is needed to support a lasting bull market.
The firm said Bitcoin could continue recovering in the short term, but stronger investor demand is still needed before the market can be considered to have entered a sustained uptrend.
At the time of reporting, Bitcoin price was $63,445.81.
