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Bitcoin Monthly Forecast – July 2018

By:
Colin First
Updated: Jul 9, 2018, 11:51 UTC

It was a month of consolidation in June and it is expected that it would be more of the same in July

Bitcoin Monthly Forecast – July 2018

It was largely a dull month of trading in the BTC markets during the month of June but in a way, it has to be said that this was something that was quite expected in the trading circles and those in the know in the crypto markets. The other cryptos tend to follow the price movements of the BTC markets and hence the trading in the entire crypto markets was generally damp during this period. This is quite similar to the trading that we had seen last year, during the same month, and hence this was not much of a surprise.

Bitcoin Slow and Steady

The overall trend continued to be weak in June and this led to the fall of the prices to some strong regions of support around the $6000 region. This region has managed to hold the prices for the short and medium term and the bulls can draw some solace from the fact that this support region has managed to hold so far. There are indeed some signs of a rebound happening in the markets, both fundamentally and technically as well, but the traders and the investors have to wait patiently for that to happen.

Bitcoin weekly
Bitcoin weekly

Fundamentally, we saw the market continue to mature with many regulators coming around to the fact that it would be better to regulate this market rather than try and fight the trend. We also saw the entry of many major financial institutions into the BTC and the crypto market as a whole and all of this is expected to add weight and maturity to the markets. This also shows that the crypto world is here to stay and these events are only some more recognition of this fact. There were not many surprises, both positive and negative, during the month of June and that is one more reason why the market was generally quiet during June. Technically, as we had said before, the strong support regions have managed to hold the prices for now and it is expected that it would continue to do so.

Prices Expected to Pick Up

Looking ahead to the month of July, we expect the prices to continue to consolidate and range but with a buoyant tone. There are signals that the large investors are entering into the market in a slow and steady manner and accumulating the cryptos and once that process is done and completed, we should see some bullishness entering into the markets once again. This is going to take time and hence it is important for the traders to bide their time. The added maturity and regulation of the market is only going to help the traders in the long term.

Technically also, we are seeing a rounded bottom taking shape on the weekly and such patterns usually lead to the prices moving higher. Since this is beginning to happen on the weekly, the resulting move to expected to be much stronger and larger and it is likely to take some time to commence. That is why we believe that the market would be bullish in the second half of the year. Of course, we will be watching this pattern and the price action closely in the coming weeks to see if there are any changes to the same.

On the fundamental side, we are seeing the market expand in a broad-based manner with the ICOs being made to regulate in many parts of the world. We are also seeing many of the exchanges maturing as well and looking to get themselves regulated and licensed so that they can carry on their business for the long term in a safe manner. All these are signs of maturation and this process is going to take some time but all this positivity is likely to contribute to the bullishness of the market in the coming months. For July, the traders and the investors have to be content with consolidation and they bide their time for the breakout to happen.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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