The summer of 2024 has not been kind to the price of Bitcoin, as historical data has shown summers to be generally bearish for the cryptocurrency. Since the beginning of summer in June, Bitcoin has experienced significant weakness, with multiple flash crashes leading to a decrease in value. The price of Bitcoin has plummeted from over $70,000 to below $50,000 at one point, indicating a considerable decline.
Crypto analyst Crypto Jelle has drawn comparisons to the summer of 2023 to predict a potential recovery for Bitcoin. By analyzing the number of days that previous summer chops have lasted, Jelle has proposed a timeline for when the current Bitcoin price decline could come to an end. The summer chop of 2023 lasted a total of 219 days, approximately seven months. Given the similarity in trends, it is possible that the current summer chop could last around the same time as the previous year.
According to Jelle, the current summer chop has been ongoing for 190 days, approximately six months. Based on the duration of the summer of 2023, there is still around one month left before the bearish phase is expected to be over. This suggests that September may continue to be choppy for the Bitcoin price, but it could signify the last month of downtrend before another rally begins. Jelle predicts that if the current chop-season lasts as long as the previous one, it could potentially end around the start of October.
Another crypto analyst known as @CredibleCrypto on X has also made predictions regarding a potential surge in the Bitcoin price. Initially, the analyst had forecasted a drawdown for the cryptocurrency, which was eventually completed by mid-week. This drawdown below $57,000 could indicate that the BTC price is now primed for a recovery. The analyst mentioned that while the anticipated move up did not occur initially, hitting the downside target suggests that a relief rally may be on the horizon.
The recent price crash in Bitcoin also resulted in a significant wipe of open interest (OI) from the market. Despite this, crypto analysts remain optimistic about the potential for a recovery. Credible Crypto noted that while there was a notable wipe on OI, there are currently no immediate signs of buyers stepping in. However, the market sentiment seems to lean towards a positive outlook for the future.
Overall, the current state of the Bitcoin price reflects a period of uncertainty and volatility. However, with analysts predicting a potential recovery in the near future, there is hope for a turnaround in the market sentiment. As the summer of 2024 continues to unfold, all eyes will be on Bitcoin to see if it can break free from the bearish trends and embark on a new rally towards higher levels.