Summers have not been kind to Bitcoin historically, and 2024 is proving to be no different. Since the beginning of summer in June, the price of Bitcoin has been struggling, experiencing multiple flash crashes that have shaken the cryptocurrency market. The once soaring price of Bitcoin, which was over $70,000, has plummeted below $50,000 at one point.
Analyst Predictions
Despite the gloomy outlook, there is hope on the horizon. Crypto analyst Crypto Jelle has drawn parallels between the summer of 2023 and the current summer of 2024. By comparing the duration of previous summer downtrends, Jelle has forecasted a possible timeline for the end of the current Bitcoin price decline. The summer chop of 2023 lasted for a total of 219 days, or approximately seven months. Given the tendency of trends to repeat, there is a possibility that the current summer chop could follow a similar timeline. The ongoing summer chop has lasted for 190 days, or around six months. Based on the duration of the 2023 summer chop, there could be roughly a month left before the bearish phase concludes. This implies that September might continue to be a turbulent period for the Bitcoin price, but there is optimism for a turnaround in October.
Recovery Anticipated
Another crypto analyst, @CredibleCrypto, has also predicted a potential surge in the Bitcoin price. Initially forecasting a drawdown for the cryptocurrency, @CredibleCrypto observed the completion of the drawdown as the Bitcoin price dipped below $57,000. This development signaled to the analyst that Bitcoin might be poised for a recovery. Despite a significant reduction in open interest (OI) in the market following the price crash, @CredibleCrypto remains hopeful for an influx of buyers. The wipe on OI, although substantial, has not yet been met with eager buyers. However, the analyst remains optimistic about the potential for a relief rally in the near future.
The summer of 2024 has been challenging for Bitcoin, with the price experiencing significant fluctuations and downturns. However, analysts are pointing towards a possible recovery on the horizon. By drawing comparisons to previous summer trends and closely monitoring market indicators, there is anticipation for a turnaround in the coming months. As investors brace themselves for continued volatility in September, there is hope that October will usher in a new phase of growth and resurgence for the pioneer cryptocurrency.