Bitcoins Price Approaches 60K as Bearish Historic Trends Confirm Summer Lull

Bitcoin is currently experiencing a decline, falling below the $62.5k mark and reaching a new low for the month. Analysts are pointing out that while this price movement may not be ideal, it is not uncommon for both Bitcoin and altcoins. Despite this period of stagnation, it is being seen as an opportune time to adjust or reposition portfolios for future success. Major market downturns are being viewed as chances to bolster quality altcoin holdings.

Miles Deutscher, an analyst, recently delved into the current state of the cryptocurrency market, with a focus on Bitcoin and altcoins. He provided several reasons for Bitcoin’s recent drop.

Summer Slowdown: The decrease in activity is a common occurrence during the summer months. Historically, the cryptocurrency market experiences a slowdown during the summer, even in bullish years. Reports indicate that trading volumes in Q3 are significantly lower, with Bitcoin trading volumes dropping by over 40% compared to the busiest quarter.

Miles pointed out that in 2017, altcoins performed poorly compared to Bitcoin. In 2019, the market reached a peak of $13k before undergoing a correction. The “DeFi Summer” took place in 2020 as investors became risk-averse. In 2021, a bearish trend continued until Elon Musk’s tweet in July. The market took a significant hit in 2022, and in 2023, it remained stagnant.

He also mentioned that many traders and funds reduce their activities in July and August, contributing to the sideways movement in the market. This period is often less predictable from a macro perspective, but optimism usually returns later in the year, leading to better market performance in Q4 and Q1.

Total 3 Chart Analysis: The Total 3 chart, which excludes Bitcoin and Ethereum, indicates that altcoins are currently moving sideways within a range after a dip. Both the altcoin market and Bitcoin are experiencing lower volume and volatility compared to earlier in the year, especially during the price surges in March and April.

Tags: Altcoins, Bitcoin, Crypto News, Cryptocurrency, Price Analysis