Bitcoin and the crypto-currency market rebounded strongly last month after a severe correction in the second quarter. Currently trading at the $23,300 level, bitcoin has seen gains of nearly 20% in the last month.
However, the more important question is where bitcoin will rise from here. Blockchain data provider Santiment reports:
Bitcoin jumped 18% in July after increasing bullish divergence in @santimentfeed’s NVT pattern in May and June finally led to a price rebound. With a neutral signal now that prices have risen and token circulation has fallen slightly, August can move in either direction.
On the other hand, Mike McGlone, an analyst at Bloomberg, said that the report risk-reward has tilted considerably in favor of bitcoin. He wrote: “July marked the biggest discount in bitcoin’s history to its 100- and 200-week moving averages, implying a recovery. I see the risk vs. reward tilted favorably for one of the largest bull markets in history“.
On the other hand, Glassnode’s data also shows that the balance of bitcoins on exchanges is steadily declining. The balance of BTC in exchanges has now reached 12.6% of the total supply in circulation.
Exchanges and crypto markets
Despite the Fed’s rate hike, the US stock market performed well in July. Some market analysts are optimistic that the market’s upward trend will continue from here.
Nasdaq 100 putting in a bullish engulfing candle!
– Lark Davis (@TheCryptoLark) August 1, 2022
Of course, as the stock market takes off, crypto will follow them on similar lines. The world’s second-largest crypto, Ethereum, has rallied more than 60% in the past month from its low point. ETH’s recent price rally has again sparked debate that Ethereum could topple Bitcoin, with ETH trading near $1,700.
Other altcoins like XRP, Polygon, Solana, Avalanche have gained upward momentum in the past month. If the broader market supports, the momentum can continue this month as well.