July is shaping up to be a potential launchpad for Bitcoin (BTC), which continues to hold above the $107,000 threshold.

Historical data, bullish technicals, and growing investor confidence are converging around the narrative that the next leg of the bull market may be imminent.

Why July Could Spark Bitcoin’s Next Major Rally Amid Summer Setup Calls

Bitcoin is trading with a bullish bias, holding well above the $107,000 threshold. As of this writing, the pioneer crypto was selling for $107,076, up nearly 50% since the first week of April.

With the flagship crypto consolidating within a bullish flag pattern, a breakout to the upside may be imminent. Flags are areas of tight consolidation in price action (the flag) showing a counter-trend move that follows directly after a sharp directional movement (flagpole) in price.

X (Twitter) user Zerohedge recently pointed out that the S&P 500 has posted positive gains in every July for the past ten years. This is a remarkable streak, with an average return of about 2.3% over the last two decades.

Notable examples include a +3.11% gain in July 2023 and a +1.13% uptick in July 2024. While older decades like the 1970s and 1980s were less consistent due to macro turbulence like the oil crisis and the 1987 crash, recent patterns paint July as a historically strong month.

Based on this outlook, Bitcoin’s correlation with the S&P 500 positions the pioneer crypto for a bullish July, if history rhymes.

Analyst Crypto Fella also sees upside potential, highlighting Bitcoin coiling up for a breakout as it tracks the S&P 500. This hints at a convergence between traditional and digital markets.

“Bitcoin [is] on the edge of breaking out and likely to match the S&P for new ATHs in July,” he noted.

Indeed, the crypto market echoes this seasonal tailwind, where Bitcoin has also demonstrated strength during the summer.

“July has been one of Bitcoin’s strongest months in history,” said Formanite, a crypto trader and analyst.

From Shakeout to Breakout: Bull Market Signals and Altseason Bets

On-chain data and sentiment suggest that Bitcoin could capitalize on its seasonal momentum again. BeInCrypto reported stablecoin metrics showing the Bitcoin rally may be far from over.

Meanwhile, analyst 0xNobler believes the market is now emerging from the final shakeout phase and stepping into a fresh uptrend.

Against this backdrop, the analyst points to a possible altcoin season, but only for the “right low caps.” He emphasizes that successful traders focus on cyclical patterns shaped by market psychology, regulatory shifts, and technology innovation.

While past performance never guarantees future returns, the stars appear to align for a bullish July across equities and crypto.

If history rhymes, investors could see Bitcoin lead the charge, followed closely by a selective altcoin rally as capital rotates into undervalued assets.

Still, investors must always conduct their own research, pairing optimism with caution. This is because macroeconomic shifts and surprise catalysts can upend even the strongest seasonal trends.