From Pillar To Post – Bitcoin Breaks Out Of Worst Monthly Losing Streak Since 2016, Why?
In the first month of the third quarter, Bitcoin broke its longest monthly losing streak since 2016. Over the course of July this year, the cryptocurrency market surged up by roughly 20% after registering a series of dramatic losses over the previous two months, with the last time that a series of drops occurred was from August 2016.
Currently, Bitcoin continues to hold strong at $7,580:
We can see an uptick in the cryptocurrency market in July, but it may be that this increase in market cap could be down to a correction in values much as was seen in May of this year.
Upon closer examination, it can be seen that the rally in July had more substance than previous market corrections. One of the indicators for this is the fact that Bitcoin surged during this month in contrast to previous months of downturn and insubstantial corrections.
Buying trends also indicate less that buyers are seeking to exchange them, but more that they're returning to a resurgent market. So far, investors are buying into what they believe will be a sustained, longer-lived rally. During July, Bitcoin's dominance rate increased and hit 48.3% from when it had previously been static at 47.8%.
Trading volumes were more optimistic during July as well, leading investors to believe that cryptocurrencies, or Bitcoin more specifically, area heading towards a more bullish trend upward. This belief is supported by a more than 5.11% increase in the average daily trading volume for bitcoin.
As of July, trading volume hit $4.56 billion compared to $4.34 billion seen in June. This demonstrates a rally in the aftermath of a three-month series of declines to this figure. Investors feeling bullish about Bitcoin will need to take more caution due to the still fragile position that the crypto is in. But the belief is that it's set for further gains after increasing 20% over July.
One thing that Investors are willing to take a bullish gamble on is whether institutional money will start turning its attention to Bitcoin with the SEC undergoing the evaluation of Bitcoin ETF applications.
That subject is the tightrope that Bitcoin and its future performance rests on; if the ETF applications are rejected, it could mean a further bearish trend, blunting any prospect of a bullish reversal.
Optimism is with the prospect of an accepted Bitcoin ETF, however, and an increasing demand for an ETF will keep Bitcoin trading on strong foundations. One factor should play well in the minds of optimists, its that Bitcoin has broken key residual trends from the previous December 2017 sell-off.