Bitcoin Gains Nearly 10% in July, but Traders Fear Repeat of 2022 Bear-Market Pattern

Research firm Rekt Capital said Bitcoin often faces thin liquidity in the third quarter because of seasonal summer effects. Despite its recent strong rebound, the market remains under pressure from more than $4 billion in ETF outflows since June. Analysts fear the move could be a “dead-cat bounce,” echoing the 2022 bear-market pattern in which a July rally was immediately followed by a sharp August decline and leaving investors on high alert.

Bitcoin gained nearly 10% in the first two weeks of July this year, its best start to the month in recent years, and briefly returned to $65,000. Historical data show that after rebounding nearly 17% in July 2022, Bitcoin immediately plunged 14% in August. Traders remain cautious about the near-term outlook, saying the cryptocurrency must break through resistance at $70,000 to confirm a market reversal.