Bitcoin's Record July Gains Spark Bearish Warning

Bitcoin's price has gained nearly 10% in July, its best month since 2022. However, market analysis warns that this could be a bearish sign.

Data from CoinGlass shows that BTC/USD is setting a four-year record for July gains at 9.5%. This is reminiscent of the 2022 bear market, where Bitcoin's price ended July nearly 17% higher after significant losses in June. However, what happened in August was a 14% drop followed by a further 3% fall in September.

Martket participants are cautious about short-term price strength due to seasonality and historical patterns. Trader Daan Crypto Trades notes that July is Bitcoin's weakest quarter on average, with gains of just 6%. Rekt Capital also sees August canceling out this month's gains and preparing for a classic bear-market bottom later in the year.

$70,000 has become a popular target for the rest of July, with some traders predicting a bullish July followed by a bearish August until Q4. Cointelegraph had previously reported on multiple onchain indicators flashing bear-market bottom signals for the first time in four years.