CoinMarketCap's head of research describes Bitcoin's bounce as a "much-awaited relief rally."
Bitcoin's price rose by 16.8% in July — its best monthly performance since October 2021.
The world's biggest cryptocurrency managed to hit a peak of about $24,500 late last month, but it's started off August on the backfoot after a plunge on the stock market.
CoinMarketCap's head of research, Alice Liu, explained:
"After a month of sideway actions around the $20,000 zone, Bitcoin has now seen some uptick of around 9% in the past nine days, stabilizing around $23,000."
She also pointed to the on-chain metric of market value versus realized value. Although BTC was trading below its realized price for most of July, she said it finally rose above this threshold last week — "sending an optimistic sentiment in the near-term."
Realized price refers to the average price of Bitcoin's supply, valued at the day each coin last transacted on-chain. Indicating that BTC may be turning a corner, she added:
"July was the month we saw the market coming out of the short-term over-correction. This much-awaited relief rally has set a good momentum for a positive breakout in the short-term."