The summer of 2024 has witnessed a similar pattern to that of 2023 when it comes to the Bitcoin market. Since the beginning of summer in June, the price of Bitcoin has been on a downward trend, experiencing multiple flash crashes along the way. The price of Bitcoin dropped from over $70,000 to below $50,000 at one point, reflecting a bearish sentiment in the market.
Crypto analyst Crypto Jelle has drawn parallels between the current summer of 2024 and the summer of 2023 in terms of the duration of the price decline. According to Jelle, the summer chop of 2023 lasted a total of 219 days, or approximately seven months. By comparing this duration to the current summer chop of 2024 which has been going on for 190 days, or around six months, Jelle predicts that there is still approximately one month left before the bearish phase is expected to end. This could mean that the month of September will continue to be choppy for the Bitcoin price, but it is likely the last month of downtrend before a potential rally begins.
Another crypto analyst who goes by the name @CredibleCrypto on X has also predicted a potential surge in the Bitcoin price. The analyst had previously forecasted a drawdown for the cryptocurrency, which was completed midway through the week. The drawdown below $57,000 could indicate that the BTC price is now poised for a recovery. @CredibleCrypto expressed optimism by stating, “Hopefully this just means we are now ready for that relief rally sooner rather than later.”
The recent price crash in the Bitcoin market also led to a significant wipe of open interest (OI) from the market. Despite this, @CredibleCrypto believes that the wipe on OI could actually be a positive sign, even though buyers have not yet stepped in. The absence of immediate signs of buyers in the market indicates a cautious approach from investors, but it could also pave the way for a potential uptrend once buying activity resumes.
The summer of 2024 has been challenging for the Bitcoin market, with the price experiencing significant volatility and downward pressure. However, analysts like Crypto Jelle and @CredibleCrypto remain optimistic about a potential recovery in the near future. While the month of September may continue to be choppy for the Bitcoin price, there is hope that the bearish phase will come to an end soon, potentially leading to a new rally in the market. Investors and traders will need to closely monitor the market dynamics and analyst predictions to make informed decisions in this uncertain environment.
