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Summers have historically been very bearish for the Bitcoin price, and the year 2024 was no different. Since the start of summer in June, Bitcoin’s price has been very weak, with multiple flash crashes rocking the pioneer cryptocurrency at several points. So far, the Bitcoin price has risen from above $70,000 to below $50,000 at one point. However, all this could be coming to an end as a crypto analyst has pointed out similarities to the summer of 2023. suggest that a recovery is imminent.
When the summer chop could end
Crypto analyst Crypto Jelle, when comparing the number of days previous summer crashes have lasted, has come up with a likely timeline for when the price drop of Bitcoin could come to an end. He mainly takes into account Bitcoin’s performance in the summer of 2023 and how many days it took before it officially came to an end.
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According to the post, the 2023 summer crisis lasted a total of 219 days, or about seven months. Given that these types of trends often mirror each other, there is a chance that the current summer crisis will last about as long as that of 2023.
The analyst points out that the current summer crisis has already been going on for 190 days, or about six months. If we look at the duration of the summer of 2023, this means that there is still about a month to go before the bearish phase is finally over.
This suggests that the month of September will remain choppy for the Bitcoin price. The good news, however, is that this is likely the last month of downtrend before a new rally begins. “If this chop season lasts as long as the last one, it will end around early October,” the crypto analyst said.
Day 190 of pork chop season today.
The previous summer heeling period lasted 219 days, after which the price more than doubled in the following months.
If this chopping season lasts as long as the last, it will end around early October.#Bitcoin pic.twitter.com/dXYMVCbmM9
— Jelle (@CryptoJelleNL) September 4, 2024
Bitcoin Open Interest Flush good for the price
Another crypto analyst who has done that predicted a potential Bitcoin price increase is @CredibleCrypto on X (formerly Twitter). The analyst had previously predicted a pullback for the cryptocurrency. By mid-week, Bitcoin price had completed its decline, prompting the analyst to move on to the next phase of the forecast.
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According to him, the drop below $57,000 could mean that the BTC price is now ready for a recovery. He explained: “Unfortunately we didn’t get to that step up first, but we have now achieved my down target so hopefully that just means we’re ready for that relief rally sooner rather than later.”
The price crash also caused a huge drop open interest (OI) out of the market, but the crypto analyst thinks this could be a good thing, even if buyers have yet to emerge. “Nice swipe on OI here, but no immediate signs of buyers intervening yet,” Credible Crypto said. “Let’s see how things develop.”
Featured image created with Dall.E, chart from Tradingview.com