In a market hallmarked by volatility and uncertainty, traders and investors search for patterns wherever possible because gains and losses tend to overshadow traditional investments like shares or bonds. To produce solid returns over a number of years (and possibly double the investment), free yourself from the buy-and-hold mindset, even if it minimizes emotional decision-making and the risks associated with buying cryptocurrency at peak prices and selling at lows.
Seasonal effects are common in financial data sets. Most of Bitcoinโs gains come directly after the halving, but the bull cycle kicked into gear earlier this year due to the January approval of spot ETFs. If youโre looking to maximize potential gains, July is the best month of the year to enter the cryptocurrency market, so youโll want to purchase just in time for the possible increases this month could bring.
Since 2013, July has consistently witnessed considerable gains, so whatever you do, donโt sit on the sidelines and let the odds work in your favor. According to the long-term Bitcoin prediction, the asset will continue its trend upward, potentially reaching $65,557.96 by tomorrow, reflecting that traders and investors have been rotating their capital from top-performing altcoins to BTC. Still, itโs essential to remain vigilant because there are no guarantees in the financial markets.
Many Analysts Believe the Bull Run Dream Will Come True Before the Close of July
The general sentiment is uncertain about the cryptocurrency marketโs trajectory, whether itโs bullish or bearish, but you must remain invested in building a portfolio that more closely aligns with your investment thesis. Though a major pullback is definitely possible, analysts argue that if Bitcoin breaks away from its recurring patterns, its value could climb up significantly. Itโs best to understand and analyze BTCโs economic and social context to grasp how itโs positioned and how it might evolve in the future.
If you look at the situation through a historical lens, youโll see that the month of July has always been very profitable, offering lucrative opportunities for people or organizations that buy Bitcoin, with 2020 having the most positive returns. On average, the biggest cryptocurrency in the world experienced a 7.98% increase in July, while the median gain lingers at 9.6%. Market movements boil down to patterns that eventually repeat themselves, and regardless of what these price movements are, thereโs always a logic to them.
Repeating patterns are lessons that present themselves as opportunities to evolve and grow. BTCโs price can reach another all-time high in 2024, coming close to $70,000 or $80,000 by the end of July, which suggests a far more favorable outlook than previously thought. Analyzing the price chart indicates that the optimal purchase time falls within the first ten days of the month, a trend critically influential in 2021, a highly constructive year for cryptocurrency. Even if July shows promising trends and exciting developments, do your homework and evaluate dynamics before reaching a decision.
For June, Bitcoin Is About to Clock Out, Losing Roughly 7%
Bitcoin has had several Junes in which traders and investors had negative earnings or lost money, namely 2013, 2018, 2020, 2021, 2022. Put simply, June is one of the worst months on record for BTC gains, so youโll want to wait until the end of the month to enter the market. Not that long ago, the asset experienced a remarkable drop, falling more than 7% in a week, reversing the growth witnessed in previous days, despite investors being optimistic that central banks wonโt raise interest rates again.
Other major cryptocurrencies followed in Bitcoinโs footsteps โ Ethereum, XRP, Dogecoin, Avalanche, Tron, Cardano, Solana, BNB, and Polygon. As discussed earlier, BTCโs trend in June 2024 was marked by a decline that matched a surge in the dollar, the core of inflation having accelerated for months in a row. Since reaching an all-time high of $73,315 in March, the crypto coin fell below $60,000, and the stocks tied to Bitcoin retreated as well. For example, the BlackRock ETF suffered its first outflows since its January inception, with roughly $36.9 million exiting the fund.
All in all, trader and investor interest is too low to predict a rebound. The rally for Bitcoin, which continues to lead the pack of cryptocurrencies, will return as more whales are eager to reinvest their gains to prepare for the future or avoid paying taxes. 5thScpae, with a strong presence in the cryptocurrency industry, has supposedly surpassed 6 million as of June 2024, strengthening its position as the most promising opponent in the gaming landscape.
Sell In May and Go Away Is No Longer Reliable In 2024, Especially When It Comes to Bitcoin
The maxim, popularized by The Stock Traderโs Almanac, recommends selling your holdings in May and re-entering the market in October or November to ride out temporary slumps. The problem is that seasonal tendencies conceal non-negligent fluctuations, so just like you canโt 100% rely on previous halvings to predict BTCโs price, you canโt know for sure whatโll happen next. The Bitcoin ecosystem welcomed spot ETFs and the Runes protocol in 2024, which will hold sway over the price trajectory.
Every decision you make is incremental and impacts the value of your investment, so do your homework and donโt just follow the hype. Figuring out the best time to buy BTC requires cautious, thorough, accurate, and concerned thought, attention, and deliberation, meaning you must take into account historical performance, seasonal trends, market sentiment, and, last but not least, expert analysis. At the end of the day, whether or not July is the best month to acquire Bitcoin depends on your strategy and risk tolerance.
You could wait for October or November to trade Bitcoin, but if your gut is telling you an absolute peak is close, itโs a good idea to jump in, even if your plan is to HODL. The biggest gains for the asset lie ahead in 2024, and the market is expected to set the stage for another bull run; selling after the climax can be an opportunity to lock in profits.