Bitcoin has managed to record some price gains within the last week following a brutal market sell-off initially of July which saw the crypto market leader lose 10% of its price on July 5. In the mean time, analysts proceed to roll out observations and predictions that suggest that Bitcoin may soon pull off a market rebound and maybe eventually embark on a highly-expected bull run.
Bitcoin’s ‘Rare’ Underperformance Hints At Possible Bullish Rebound
In an X post on Friday, outstanding blockchain analytics company Santiment provided some intriguing insights into Bitcoin’s recent price behavior. Santiment stated Bitcoin is basically behind the S&P 500 and other equities in relation to cost performance, a development which they described as a “rare sight” during the last three years.
Despite a gentle recovery to finish the week, Bitcoin’s recent dip got here because the S&P 500 and equities continued to flourish. This has been a rare sight for the past 3 years, with most of crypto’s runs coming in tandem. BTC lagging behind suggests an eventual bullish catch up period. pic.twitter.com/q4FnwmZMpK
— Santiment (@santimentfeed) July 12, 2024
As earlier stated, Bitcoin’s current massive price dip might be attributed to a large-scale market sell-off mainly by the German Government who’ve now completely offloaded their total BTC holdings valued at $2.9 billion.
Moreover, the defunct crypto exchange Mt. Gox which collapsed in 2014, finally began the repayment of a $9 billion debt to creditors in BTC and BCH, nearly all of which were expected to be sold, thus a prompting massive selling pressure. While Bitcoin showed some resilience this week gaining by 2.88%, the premier cryptocurrency still trails the positive price performance of the equities market on a bigger timeframe.
For context, Santiment explains that Bitcoin has declined by 19.4% within the last five weeks while the S&P 500 has recorded a 5.4% gain inside that very same period. Nonetheless, as this development has been a rare occurrence within the last three years as each assets normally moved in tandem, Santiment suggests Bitcoin may experience a “bullish catch-up period.”
Bitcoin To Challenge 1.5-Month Downtrend
In other news, crypto analyst Rekt Capital has noted that Bitcoin is currently battling to finish a downtrend stretching during the last one-and-a-half month. During this era the premier cryptocurrency has lost over 18% of its price.
In keeping with Rekt Capital, Bitcoin has attempted to interrupt out of this downtrend multiple times including 3 times within the last three days. If Bitcoin eventually pulls a trend reversal, the market leader could also be set for full price recovery reaching as high as $71,000.
On the time of writing Bitcoin trades at $58,170 with a 1.69% gain within the last day. Nonetheless, this mild price pales compared to the comparison which has surged by 30.81% to a price of $5,615 within the last 24 hours.
Featured image from The Economic Times, chart from Tradingview.com