bitcoin has managed to record some price gains over the past week following a brutal market sell-off in early July, which saw the cryptocurrency market leader lose 10% of its price on July 5. At the moment, analysts continue to come out with observations and predictions suggesting that bitcoin could soon stage a market rally and perhaps eventually embark on a long-awaited bull run.
bitcoin's 'weird' underperformance suggests a possible bullish rally
In x.com/santimentfeed/status/1811788279161000184″ target=”_blank”>An x post on FridayProminent blockchain analytics firm Santiment provided some interesting insights into bitcoin’s recent price performance. Santiment claimed that bitcoin is largely lagging the S&P 500 and other stocks in relation to price performance, a development they described as a “rare glimpse” over the past three years.
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Despite a slight recovery at the end of the week, bitcoin’s recent drop occurred while the S&P 500 and stocks continued to flourish. This has been a rare occurrence over the past 3 years, as most cryptocurrency rallies have occurred in tandem. The fact that btc is lagging behind suggests a potential bullish recovery period. image.twitter.com/q4FnwmZMpK
– Feeling (@santimentfeed) twitter.com/santimentfeed/status/1811788279161000184?ref_src=twsrc%5Etfw”>July 12, 2024
As stated earlier, the current massive drop in the price of bitcoin can be attributed to a massive sell-off in the market, primarily by the German government, which has now completely dumped its total btc holdings worth $2.9 billion.
Additionally, the defunct cryptocurrency exchange Mt. Gox, which collapsed in 2014, has finally started paying off $9 billion in debt to creditors in btc and BCH, most of which was expected to be sold, leading to massive selling pressure. While bitcoin showed some resilience this week, gaining 2.88%, the top cryptocurrency is still lagging behind the positive price performance of the stock market on a broader time frame.
For context, Santiment explains that bitcoin has fallen 19.4% over the past five weeks, while the S&P 500 has recorded a gain of 5.4% over that same period. However, as this development has been somewhat uncommon over the past three years, with both assets generally moving in lockstep, Santiment suggests that bitcoin may experience a “bullish recovery period.”
bitcoin to challenge 1.5-month downtrend
In other news, cryptocurrency analyst Rekt Capital has… x.com/rektcapital/status/1811803607966040183″ target=”_blank”>noted bitcoin is currently struggling to end a bearish trend that has been going on for a month and a half. During this period, the main 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 past three days. If bitcoin eventually manages to achieve a trend reversal, the market leader could be poised for a full price recovery and a high of $71,000.
At the time of writing this article, bitcoin bitcoin/” target=”_blank”>trade winds at $58,170 with a gain of 1.69% in the last day. However, this moderate price pales in comparison to the comparison price, which is up 30.81% to a price of $5,615 in the last 24 hours.
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Featured image from The Economic Times, chart from Tradingview.com
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