Bitcoin looks set to register its best July price performance for eight years and confirm a major bullish breakout in the process.
Bitcoin is trading near $11,190 at press time and is up nearly 22% this month, according to data from CoinDesk’s Bitcoin Price index.
The cryptocurrency now needs to hold above $11,145 until Friday’s close (in UTC time) to confirm the biggest July gain (at 22%) since 2012, when prices rallied by 40%.
If bitcoin closes below $11,050, the resulting monthly gain would be less than the 21% rise seen in July 2018.
July’s double-digit monthly gain marks an end of a two-month-long price consolidation in the range of $9,000-$10,000.
The cryptocurrency sprang into action amid the U.S. dollar’s broad-based sell-off on the foreign exchange market and gold’s rally to record highs above $1,950 per ounce.
“Bitcoin stands out this year against a backdrop of massive stimulus measures from central banks and a failing financial system,” Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, told CoinDesk.
A resurgence of institutional participation and bearish sentiment around the dollar may power stronger gains over the coming months.
The bullish trend looks strong with the cryptocurrency showing few signs of stress, despite increased miner sales observed earlier this week.
Poolin, the biggest mining pool globally, transferred 435 bitcoin to exchanges on Wednesday, the biggest single-day outflow since May 3, according to Glassnode.
Technical charts also paint a bullish picture.
The monthly chart shows an upside break of a 2.5-year-long descending triangle.
The breakout has exposed resistance located at $13,880 (June 2019 high).
“Bitcoin’s break above $10,500 marks a significant change in the direction of the market,” popular analyst Lark Davis tweeted on Wednesday.
That possibility of a minor drop can’t be ruled out, as bitcoin is looking overbought on the relative strength index.