Up-To-Date Markets: Bitcoin Gets Its Best Monthly Return Of 2022 In July

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After a disastrous month of June for bitcoin, in which the price fell 37%, the month of July is concluding with a return for bitcoin of 19.5%. This makes it the best month in earnings of the first cryptocurrency since October 2021.

As part of its restrictive monetary policy, the Federal Reserve has been raising interest rates since March of this year, with the aim of controlling inflation. The fourth increase in interest rates, executed last Wednesday, July 27, was 0.75% or 75 basis points, as reported by CriptoNoticias.

This last increase, despite the fact that it repeated the June rate hike and is triple the March increase, corresponded to market expectations, which influenced a rebound in the price of bitcoin in recent days.

CriptoNoticias conducted an analysis of the impact of this restrictive monetary policy of the Fed on the price of bitcoin. Despite interest rate increases, which attempt to limit the money supply in circulation, inflation has not been controlled in the United States, as reported by CriptoNoticias.

38% BTC Price Boom From June Low

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The progress of the bitcoin price with this latest boom becomes more noticeable when we take into account that in mid-June, BTC registered a minimum of USD 17,600. Since then, the price has progressed by 38%,” as reported by CriptoNoticias on Friday.

At the time of writing, the rebound from the annual low was 35%, although there has been a further rise that brings the quote to USD 23,793, as we write this note.

In the context of the current bearish phase of the BTC price, with a deterioration of 64% compared to the maximum reached in November 2021, the rebound of bitcoin this month has been reflected in the weekly traded volume that has been growing from 200,000 BTC at the beginning of July, and exceeded 300,000 BTC in the third week.

Is This Bitcoin Rally Transient?

The fact that in this last week the bitcoin rally of recent weeks has been accentuated, revives the controversy about whether we are living a real bullish recovery or if it is a relief rally before returning to lower levels.

CriptoNoticias reviews the criteria of different analysts on this rebound. Among them, the opinion of Scott Melker is commented, who highlights that those who comment on social networks about the course of the price of bitcoin are retail investors, but it is the bitcoin whales who really move the price.

Bitcoin Will Oscillate In This Price Range For 5 Months

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For trader SantinoCripto, the price of bitcoin will enter a “long and boring” stage of lateralization. It predicts that bitcoin will fluctuate between USD 18,000 and USD 30,000 for 4 or 5 months, as we report in this medium. For this trader, this will happen until the bullish force outweighs the bearish one. The recovery of the price after that stage will be slow, says SantinoCripto, and believes that in about 8 months bitcoin could be in the USD 50,000.

IMF Forecasts 12% Inflation For Latin America

A recent report by the International Monetary Fund (IMF), commented by CriptoNoticias, forecasts that inflation in Latin America this year will reach 12% and will be 8.7% by 2023. These are the highest rates in the last 25 years, the IMF said.

According to the agency, the increase in inflation is partly due to increasingly restrictive global financial conditions and rising commodity prices. The IMF recommends that the authorities’ first priority be dedicated to “preserving macroeconomic stability and social cohesion”.

Featured Chart Of The Week

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The use of the Fibonacci sequence allows to establish probable levels of rebound or retreat of the price using the percentages 23.6%, 38.2%, and 61.8%, among others. The so-called Fibonacci circles use the same principle to derive the possible future historical highs, starting from the last ones that occurred and the price background of the respective cycle.

That technique allowed the author to determine the all-time highs of 2013 and 2021. Assuming that the price of bitcoin already bottomed out in mid-June at USD 17,600, the technique made it possible to determine the next historical caps of the bitcoin price. According to the chart, these would be over $216,000 and $370,000.