Bitcoin has managed to post some price gains over the past week after a brutal market sell-off in early July, with the crypto market leader losing 10% of its price on July 5. At this point, analysts continue to roll out observations. and predictions suggesting that Bitcoin could soon trigger a market recovery and perhaps finally embark on a long-awaited bull run.
Bitcoin’s ‘rare’ underperformance signals a possible bullish rebound
In an X-post on Fridayhas provided leading blockchain analytics firm Santiment with some intriguing insights into Bitcoin’s recent price behavior. Santiment stated that Bitcoin has largely lagged the S&P 500 and other stocks in terms of price performance, a development they described as a “rare phenomenon” over the past three years.
Despite a mild recovery at the end of the week, Bitcoin’s recent dip came as the S&P 500 and stocks continued to thrive. This has been a rare occurrence over the past three years, with most crypto runs happening simultaneously. BTC’s underperformance signals a possible bullish catch-up period. pic.twitter.com/q4FnwmZMpK
— Santiment (@santimentfeed) July 12, 2024
As previously mentioned, Bitcoin’s current massive price drop can be attributed to a massive market sell-off, mainly by the German government, who have now completely lost their entire BTC holdings worth $2.9 billion.
Furthermore, defunct crypto exchange Mount Gox, which collapsed in 2014, finally started repaying $9 billion in debt to creditors in BTC and BCH, most of which was expected to be sold, causing massive selling pressure. Although Bitcoin showed some resilience this week, rising 2.88%, the leading cryptocurrency is still tracking the stock market’s positive price performance on a broader time frame.
For context, Santiment explains that Bitcoin is down 19.4% over the past five weeks, while the S&P 500 has posted a 5.4% gain over the same period. However, since this development has been rare over the past three years as both assets usually moved together, Santiment suggests that Bitcoin may experience a “bullish catch-up period.”
Bitcoin is set to challenge the 1.5-month downtrend
Crypto analyst Rekt Capital has other news noted that Bitcoin is currently struggling to end the downtrend of the past month and a half. During this period, the leading cryptocurrency has lost more than 18% of its price.
According to Rekt Capital, Bitcoin has attempted to break out of this downtrend several times, including three times in the last three days. If Bitcoin ultimately triggers a trend reversal, the market leader could be poised for a full price recovery as high as $71,000.
At the time Bitcoin was written transactions at $58,170 with a gain of 1.69% on the last day. However, this mild price pales in comparison to the comparison, which has risen 30.81% in the last 24 hours to a price of $5,615.
Featured image from The Economic Times, chart from Tradingview.com