Understanding the Recent Bitcoin Price Drop
Bitcoin recently fell below $62.5k, hitting a new monthly low. Analysts note that while this price action isnβt ideal, itβs not unusual for Bitcoin and altcoins. However, despite the sideways movement, this period is seen as a good time to position or reposition portfolios for future success. Major market dips should be viewed as opportunities to add to quality altcoin positions.
Analyst Insights
- Analyst Miles Deutscher recently discussed the current state of the cryptocurrency market, focusing on Bitcoin and altcoins.
- He gave various examples of why Bitcoin might be dropping.
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Summer Lull:
- The reduced activity is typical of the summer months.
- Historically, the crypto market experiences a lull during summer, even in bullish years.
- According to reports, Historically, Q3 trading volumes are much lower.
- Bitcoin trading volumes typically drop by more than 40% compared to the busiest quarter.
- Miles said that in 2017, altcoins underperformed compared to Bitcoin.
- In 2019, the market peaked at $13k before undergoing a correction.
- During 2020, βDeFi Summerβ occurred as investors were risk-averse.
- In 2021, a bearish trend continued until Elon Muskβs tweet in July.
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The market significantly tanked in 2022, and in 2023, it moved sideways.
- He added that many traders and funds reduce their activities in July and August, contributing to the marketβs sideways movement.
- This period is often less clear from a macro perspective, but later in the year, optimism usually returns.
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This is reflected in better market performance in Q4 and Q1.
- Total 3 Chart Analysis:
- The Total 3 chart, which excludes Bitcoin and Ethereum, shows that altcoins are currently within a range, moving sideways after a dip.
- Both the altcoin market and Bitcoin are in a range with lower volume and volatility compared to earlier in the year.
- This is especially noticeable during the price surges in March and April.
Hot Take: Positioning for Future Success
Take advantage of the current market lull to position or reposition your portfolio for future success. While Bitcoin and altcoins may be experiencing sideways movement, these periods can present opportunities to add quality altcoin positions. Stay informed about market trends and make strategic moves to maximize your returns in the long run.
Cino Gaperi stands out as a prominent crypto analyst, accomplished researcher, and adept editor, making significant contributions to the field of cryptocurrency. With a strong background in crypto analysis and research, Cino’s insights delve deep into the intricate aspects of digital assets, appealing to a diverse audience. His keen analytical skills are complemented by his editorial proficiency, allowing him to distill complex crypto information into easily digestible content. Cino’s contributions serve as a valuable compass for both seasoned enthusiasts and newcomers, guiding them through the dynamic landscape of cryptocurrencies with well-researched perspectives. With a commitment to precision, he empowers informed decision-making within the ever-evolving crypto sphere.
