Bitcoin Big Move Expected in July After March Surge of $30,000 Latest Analysis

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Bitcoin consolidation could end by July, according to new research, as optimism about a BTC price breakout returns.

In its latest market update on June 2, trading firm QCP Capital revealed a bullish bias on Bitcoin (BTC) and the largest altcoin, Ether (ETH).

QCP Capital: Bitcoin consolidation went perfectly

Bitcoin price has been hovering between $26,000 and $31,000 since mid-March, but analysts are asking for more and more time for sideways action.

QCP Capital is one of them, predicting a change of course at the end of the month.

This, he says, is due to the disappearance of the US debt ceiling, leaving Bitcoin to closely mimic its consolidation and breakout phase from 2020 onwards.

With the House and Senate passing the Debt Ceiling Bill that extends the ceiling until January 2025, we can now all move on and not have to worry about a political spectacle. parallel until the US presidential elections next year, he writes.

This means that we are now returning to our regular programming of proper macro and crypto narratives.

For QCP, the price levels may be different, but the underlying behavior is the same in 2023 as at the start of the COVID-19 pandemic.

At the time, the Federal Reserve released a giant $4 trillion in liquidity, inflating risky assets and ultimately sending Bitcoin to new all-time highs.

In March 2020, we were on the verge of a massive price drop below 5,000 when the Fed triggered the liquidity tap, causing prices to rise exponentially as the halving cycle approached the following year. , he wrote, citing a previous edition of his Just Crypto newsletter series.

Similarly, in March 2023, we were about to break below 20,000 on BTC due to the banking crisis, when the Fed again triggered the liquidity tap to bring us back above 30,000, so that we are heading into the next round of halving next year. .

If the relationship continues to play out, the next phase is obvious: a dramatic breakout from the trading range, with QCP positioning long option plays.

This consolidation has been going perfectly so far, but we expect to be nearing the end of it soon this month. As a result, we recommend positioning ourselves for a next big move through long 3m and 6m chokes here, with a bias towards the long call, he added.

An attached chart showed that June was a hot spot for BTC and ETH volatility from 2019.

3-month peg volatility chart for BTC, ETH (screenshot). Source: QCP CapitalBetting on BTC price breakout

As Cointelegraph reported, other signals coming from Bitcoin indicate that a new paradigm will take over shortly.

Related: Bitcoin Drops to $26.5,000, but Trader Eyes Chance for Bullish Surprise

These include on-chain metric tracking hodler behavior, which in late May placed BTC/USD in a transition phase away from capitulation and on the path to euphoria.

Several market participants, meanwhile, claim that BTC price action is at a critical stage, with a decision on its trajectory now due.

BTC/USD traded near $27,000 on June 2, according to data from Cointelegraph Markets Pro and TradingView, ending May down 7%.

BTC/USD 1-day candle chart on Bitstamp. Source: Trading View

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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