Bitcoin (BTC) price has continued to show bullish sentiment in July after closing June at its highest monthly close since inception. On Wednesday, July 2, the flagship coin surged 4 percent to trade at around $109,420 during the mid-North American trading session.
Despite the recent uptrend, BTC price has not completely dispelled the midterm bearish sentiment. This bearish sentiment was attributed to significant cumulative short leverage trades and consistent negative funding rates, as reported by Coinpedia.
One key factor that will impact Bitcoin price action in July is the exponential growth of the global money supply (M2). The U.S. government’s need to increase its budget deficit implies more money supply in the near term, which is seen as extremely bullish for Bitcoin.
Another factor to watch is the performance of U.S. spot Bitcoin ETFs, led by BlackRock’s IBIT. These ETFs have seen a net cash inflow of approximately $12.8 billion in the last three months, which could have a significant impact on BTC price.
Additionally, monitoring the performance of major companies that have implemented a Bitcoin treasury management plan will be crucial in determining BTC price action in July. The rising demand from institutional investors has led to a sharp decline in disposable coins on centralized exchanges, exacerbating the supply vs demand shock.
In terms of midterm targets, BTC price has broken above a crucial resistance logarithmic trendline following the recent surge. If buyers can maintain above $109k in the coming weeks, the flagship coin is well-positioned to rally towards a new all-time high.
According to Bitwise CIO Matt Hougan, Bitcoin price could potentially surpass its all-time high in July, fueled by easing geopolitical tensions and increasing demand from institutional investors. The bullish sentiment for July is further supported by historical data showing that Bitcoin has predominantly seen gains in more Julys over the past decade.
However, the midterm bullish sentiment could be invalidated if BTC price retraces towards the lower border of the falling channel, which is around the support range between $92k and $96k. Overall, the outlook for Bitcoin in July remains positive, with various factors influencing its price action in the coming weeks.