Summers have historically been very bearish for the Bitcoin price, and the year 2024 has been no different. Since summer began in June, the price of Bitcoin has been very weak, with multiple flash crashes rocking the pioneer cryptocurrency at various points. So far, the Bitcoin price has gone from over $70,000 to below $50,000 at one point. However, this could all be coming to an end as a crypto analyst has pointed out similarities with the summer of 2023 that suggest a recovery is imminent.
When The Summer Chop Might End
Crypto analyst Crypto Jelle, comparing the number of days that previous summer chops have lasted, has come up with a likely timeline for when the Bitcoin price decline could come to an end. Mainly, he takes into account the performance of Bitcoin in the summer of 2023 and how many days it lasted before it officially came to an end.
According to the post, the summer chop of 2023 actually lasted a total of 219 days, or approximately seven months. Given that trends like these tend to mirror each other, there is a chance that the current summer chop could last around the same time as that of 2023 did.
The analyst points out that the current summer chop has been going on for 190 days, or approximately six months. Going by the duration of summer 2023, it means there is still around one month left to go before the bearish phase is finally over.
This suggests that the month of September will continue to be choppy for the Bitcoin price. However, the good news is that it is likely the last month of downtrend before another rally begins. “If this chop-season lasts as long as the previous one, it will end around the start of October,” the crypto analyst stated.
Day 190 of chop-season today.
The previous summer chop lasted for 219 days, after which price more than doubled in the months that followed.
If this chop-season lasts as long as the previous one, it will end around the start of October.#Bitcoin pic.twitter.com/dXYMVCbmM9
— Jelle (@CryptoJelleNL) September 4, 2024
Bitcoin Open Interest Flush Good For Price
Another crypto analyst who has predicted a potential surge in the Bitcoin price is @CredibleCrypto on X (formerly Twitter). The analyst had previously predicted a drawdown for the cryptocurrency. By the middle of the week, the Bitcoin price had completed the drawdown, prompting the analyst to move to the next phase of the prediction.
According to him, the drawdown below $57,000 could mean that the BTC price is now ready for a recovery. He explained that “Didn’t get that move up first unfortunately but we have now hit my downside target so hopefully this just means we are now ready for that relief rally sooner rather than later.”
The price crash also saw a massive wipe of open interest (OI) from the market, but the crypto analyst believes that this could be good, although buyers are yet to arrive. “Nice wipe on OI here but no immediate signs of buyers stepping in just yet,” Credible Crypto said. “Let’s see how things develop.”
Featured image created with Dall.E, chart from Tradingview.com
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