Multiple market analysts anticipate a strong rebound for Bitcoin in July following a roughly 7% decline in June.

In June, Bitcoin faced significant selling pressure from miners who sold around $2 billion worth of their holdings due to decreased revenue. Additional selling pressure came from governments, including those of the United States and Germany.

Despite this, some market observers predict that Bitcoin will recover from its June lows and perform well in July.

Bullish July

QCP, a crypto trading firm based in Singapore, indicated that available indicators suggest a “bullish July” for Bitcoin.

The firm highlighted that historical data shows Bitcoin tends to have a median return of 9.6% in July, especially after a negative June.

QCP expects this trend to continue, noting the recent inflows into Bitcoin exchange-traded funds (ETFs). The firm pointed out that ETFs saw their highest daily inflow in two weeks on June 28, with $73 million flowing in.

These inflows, along with flows reported by the firm's options desk, suggest market anticipation for an upward move. The firm commented:

“Our options desk also saw flows positioning for an upside move last Friday into the month-end, possibly in anticipation of the ETH spot ETF launch. Many signs point to a bullish July.”

Additionally, crypto trader Rekt Capital supported QCP’s optimistic outlook, stating that Bitcoin is forming a cluster of price actions that could develop over July, potentially leading to a rally back to the Range High at $71,500.

Political Influence

Crypto research firm 10x Research noted that these predictions might be influenced by US politics.

The firm stated:

“Bitcoin has rallied +4% as US President Biden refuses to let other Democratic candidates run against former President Trump.”

However, it questioned the sustainability of this trend in the long term.

Last week, former President Donald Trump debated President Joe Biden, raising concerns about Biden's capability to lead in the upcoming November elections.