The price of Bitcoin is expected to close at $24,000 in July as market sentiment emerges from the "fear" zone

There are predictions that, after successfully reversing the worst phase of the 2022 cryptocurrency downturn in July, the relatively favorable conditions may continue into next month.

Bitcoin

As the monthly close approaches, volatility declined over the last weekend of July.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

July Close Eyes the 200-Week Moving Average

Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD remained below the $24,000 resistance level on July 30.

In the latter half of the week, GBP/USD benefited from macroeconomic optimism for risk assets, including a strong close in U.S. stock markets. The S&P 500 and the Nasdaq Composite rose by 4.1% and 4.6% respectively for the week.

However, analysts warn that due to low liquidity and susceptibility to over-the-counter (OTC) trading, anything could happen between now and July 31 in terms of weekly and monthly closes.

“As usual, I’ll be sitting back and watching the market until the weekly close,” summarized Josh Rager.

“Even though there may be a few outliers that continue to perform well over the weekend under current market conditions, it’s hard to justify any serious trading.”

Others have turned their attention to the significance of the current spot price level, which sits above the key 200-week moving average (MA) at $22,800. A weekly close above this trend line would be Bitcoin’s first such move since June.

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That said, well-known trader Roman has taken a conservative short-term outlook, expecting Bitcoin to retrace at least to $23,000 due to "overbought" conditions.

This week, optimism in the crypto market continued to grow, with the Crypto Fear & Greed Index reaching its highest level since April 6 after emerging from the longest period of "Extreme Fear" in its history.

The index stood at 45/100 on the day, officially entering the “Neutral” zone.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

August Expected to Remain Bullish

Looking ahead to next month, Cointelegraph contributor Michaël van de Poppe suggested that stock performance would continue to provide fertile ground for a cryptocurrency rebound.

Related: Bitcoin bear market ends as metrics show BTC exchange balances at a four-year low

Part of a July 29 update on Twitter stated: “It sounds like we’ll continue this trend in August, including for crypto and Bitcoin.”

“This is the summer relief rally!”

August is expected to be a relatively calm month for U.S. macroeconomic triggers, as the Federal Reserve will not adjust policy again until September.

However, inflation risks remain. The next Consumer Price Index (CPI) reading will be released on August 10. This week, the European Union announced the highest monthly inflation forecast ever recorded in the eurozone—8.9%.