Buying Bitcoin during consolidation before July growth wave with 110,000 target

Despite a seasonal summer lull and a downtrend in volatility, Bitcoin is showing sustained investor interest. At the time of this analysis, the price was hovering around 107,000.

The challenging macroeconomic environment, including renewed US inflationary pressures and uncertainty over import tariffs, is driving investor interest in alternative assets. Under these conditions, Bitcoin continues to reinforce its status as a reliable store of value, akin to digital gold. Notably, there has been a significant influx of capital from American investors, who are key drivers of the current trend.

Over the past week, the volume of investments in the cryptocurrency market amounted to $2.7 billion, which brought the total injections to a level above $16.9 billion. Bitcoin dominates these inflows, accounting for 83% of all investments. This is a clear signal of growing confidence in the leading cryptocurrency as a long-term asset. The simultaneous outflow of funds from short positions indicates a shift in trader sentiment toward a sustained bullish trend.

Positive performance in traditional financial markets is another key driver. The S&P 500's rally and the potential inclusion of MicroStrategy shares in the index could further boost Bitcoin's upward momentum.

In addition, seasonal factors also play a role. July has historically been a favorable month for Bitcoin, as evidenced by recent years' data. The average return for this month is +7.56%, and in eight of the last twelve years, the month has ended with positive gains. Amidst strong macroeconomic conditions, high investor activity, and favorable seasonality, the market has the potential to break the psychologically important $110,000 resistance level.

Currently, the Bitcoin market is in a consolidation phase, preparing to hold above 107,000. The Stochastic oscillator is in a neutral state, showing neither obvious overbought nor oversold signals.

Current recommendation:

Buy Bitcoin at the current price. Take profit – 110 000. Stop loss – 105 000.