The summer of 2024 has not been particularly kind to Bitcoin, with the price of the cryptocurrency experiencing significant weakness since June. Flash crashes have become a common occurrence, causing the price of Bitcoin to plummet from over $70,000 to below $50,000 at one point.
Crypto analyst Crypto Jelle has drawn parallels between the summer of 2023 and the current trend in 2024. By analyzing the duration of previous summer chops, Jelle has suggested a potential timeline for the end of the Bitcoin price decline in 2024. In 2023, the summer chop lasted a total of 219 days, or approximately seven months. Given the tendency for trends to mirror each other, there is a possibility that the current summer chop could last a similar length of time.
As of now, the current summer chop in 2024 has been ongoing for 190 days, or approximately six months. Based on the duration of the summer chop in 2023, it is estimated that there is still roughly one month left before the bearish phase comes to an end. This indicates that September may continue to be a choppy period for the Bitcoin price, but it could also mark the last month of downtrend before a new rally begins.
Crypto analyst @CredibleCrypto, formerly on Twitter, has also weighed in on the potential future of the Bitcoin price. Having previously predicted a drawdown for the cryptocurrency, @CredibleCrypto noticed that the Bitcoin price had dropped below $57,000, potentially signaling a readiness for a recovery. The analyst expressed optimism about a relief rally in the near future.
The recent price crash in Bitcoin also led to a significant wipe of open interest (OI) from the market. Despite this, @CredibleCrypto believes that the removal of open interest could have positive implications, even though buyers have not yet shown signs of stepping in. The analyst remains hopeful for a turnaround in the market sentiment.
The summer of 2024 has continued the trend of bearishness that has historically affected Bitcoin prices during the summer months. However, indications from analysts like Crypto Jelle and @CredibleCrypto suggest that a recovery may be on the horizon. By drawing comparisons with past trends and closely monitoring market indicators, investors and enthusiasts can better prepare for the potential shifts in the Bitcoin price in the coming months.