Bitcoin follows S&P 500 to reach a new peak in July?

Bitcoin traders expect July to be one of the best-performing months, even though it has started with a red hue. The latest forecasts indicate that BTC is following the trend of the American stock market to continue rising in the coming month.

Bitcoin price is expected to follow the stock market

Bitcoin is expected to end July on a strong upward trend, as historical data supports the recovery potential of risk assets in the next 30 days.

According to trader Mikybull Crypto, July has often brought success for American stocks, as the S&P 500 has recorded 10 consecutive July months closing in the green.

July even brought more profits than both May and June, two months during which the S&P 500 recorded only one or two declines since 2015.

For Bitcoin, the picture is somewhat more mixed. Data from the analysis platform CoinGlass shows that price performance in May and June was quite volatile, while July saw a more positive trend, with a maximum decline of less than 10%.

"Bitcoin is about to breakout and has the potential to reach a new ATH in July like the S&P 500," trader Crypto Fella shared last weekend.

Monthly profits of Bitcoin | Source: CoinGlass## Double top and double bottom pattern of Bitcoin

Despite the optimistic sentiment, BTC started July on a gloomy note, dropping to its lowest level of the month so far, below the $106,700 mark at the time of writing.

According to data from CoinGlass, a buying support zone has formed starting from $106,200, while Short orders at the $108,000 mark have not yet been liquidated.

BTC liquidation map | Source: CoinGlassCommenting on the current situation, trader Daan Crypto Trades is not too worried about Bitcoin not reaching the all-time high (ATH) yet.

"Still consolidating within the current range and price channel. With the new month and new quarter, we often see price fluctuations in the early stages, after which a clear trend can be established. Give the market some time and watch for confirmation signals," he wrote on X.

BTC 4-hour price chart | Source: Daan Crypto TradesContinuing the analysis, trader and commentator Trader Tardigrade observes that Bitcoin is likely to retest the support areas before bouncing up.

"Bitcoin is forming a double top and double bottom pattern in the accumulation zone from 101,000 to 109,000 dollars. The internal support/resistance levels may be tested before breaking the range top of 109,000 dollars," he noted along with the 3-day chart.

BTC price chart 3 days | Source: Trader TardigradeMinh Anh