Bitcoin and the wider crypto market have historically rallied in July, but traders are worried that the Mt. Gox repayments could impact the strength of this trend.
The bears’ failure to sink Bitcoin (BTC) below the support of the $56,552 to $73,777 range has started a recovery. In a range, the price generally swings between the support and the resistance. The price action in the middle is random and volatile.
A minor positive for the bulls is that they have tried to form a higher low at $58,402 on June 24. Bitcoin’s recovery could pick up pace in July if history repeats itself. CoinGlass data shows that after a negative monthly closing in June, there has been a sharp rebound every time in July.
However, some analysts caution that the rally may face headwinds. The risk to the upside could come from the Mt. Gox repayments, starting in early July. Expectations are that creditors may rush to the exit to lock in the massive gains in Bitcoin since the hack. That could create selling pressure, which could pull Bitcoin lower.