After three consecutive months of monthly records, Bitcoin ended June at new highs. However, some technical analysts are starting to question the strength of this recovery. What is the real story behind it ?
Bitcoin ended June with a new all-time high, closing at approximately $107,000. This achievement follows records set in April and May, making this quarter one of the strongest performing periods in history for the cryptocurrency.
However, despite this impressive series of gains, technical analysts are beginning to question the sustainability of this bullish trend. Some have identified a particular chart pattern known as a “spinning top”, which could indicate an extended period of uncertainty in prices. This signal might foreshadow a potential trend reversal in the coming weeks.
Nevertheless, all eyes are now turning to July, historically a favorable month for Bitcoin price increases. According to data from 10x Research, July has shown positive performance in 7 of the last 10 years, with an average increase of approximately 9%.
“Even in years when July was negative, losses remained limited to just a few percentage points,” notes Markus Thielen, Head of Research at 10x Research. The analyst also highlights the upward trend observed in US stock markets, which often correlates with an appreciation in Bitcoin’s price.
However, not all observers share this optimism. Renowned analyst Rekt Capital points out that Bitcoin’s weekly candle closed below a key resistance level at $108,890. Breaking through this threshold will be crucial for the cryptocurrency to maintain its bullish momentum.
Meanwhile, whales are accumulating Bitcoin at unprecedented levels. If Bitcoin drops to $104,000, traders should carefully monitor its reaction, as this could prove to be a buying opportunity.
On the other hand, realized profits on Bitcoin have increased dramatically to $2.5 billion, though still below the $4.5 billion observed last November. This explains the current retracement and difficulty breaking through the $109,000 level.
After reaching new all-time highs, Bitcoin currently faces mixed technical signals. While some analysts still see opportunities for a summer rally, others emphasize the importance of breaking through key resistance levels to confirm the strength of the trend.
In this context, investors will be closely watching price developments in the coming weeks, looking for further developments that could influence the trajectory of the leading cryptocurrency.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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