Bitcoin has managed to post some price gains in the past week following a brutal market sell-off in early July that saw the cryptocurrency market leader lose 10% of its price on July 5. At the moment, analysts continue to offer observations and predictions that suggest Bitcoin could soon rebound in the market and perhaps finally embark on a much-anticipated bull run.
Bitcoin’s ‘Scarce’ Underperformance Points to Possible Upside Rebound
IN Post X on FridayRenowned blockchain analytics firm Santiment has provided some intriguing insights into Bitcoin’s recent price performance. Santiment found that Bitcoin has largely lagged the S&P 500 and other stocks in terms of price performance, which has been described as a “rare sight” over the past three years.
Despite a soft recovery tardy in the week, Bitcoin’s latest decline came as the S&P 500 and stocks continued to rally. That’s been a sporadic sight over the past three years, as most cryptocurrency runs have come in tandem. BTC’s lag suggests an eventual period of catching up. photo: twitter.com/q4FnwmZMpK
— Santiment (@santimentfeed) July 12, 2024
As mentioned earlier, the current edged decline in the price of Bitcoin can be attributed to a massive sell-off in the market, mainly from the German government, which completely disposed of its BTC holdings worth a total of $2.9 billion.
In addition, the failed cryptocurrency exchange Mt. Gox, which collapsed in 2014, has finally begun repaying $9 billion in debt to creditors in BTC and BCH, most of which was supposed to be sold, prompting massive selling pressure. While Bitcoin has shown some resilience this week, gaining 2.88%, the leading cryptocurrency continues to lag the positive price performance of the stock market over the longer term.
For context, Santiment explains that Bitcoin is down 19.4% over the past five weeks, while the S&P 500 has seen a 5.4% gain over the same period. However, since this development has been a sporadic occurrence over the past three years, as the two assets have typically moved in tandem, Santiment suggests that Bitcoin could experience a “bullish period.”
Bitcoin set to challenge 1.5-month downtrend
In other news, cryptocurrency analyst Rekt Capital has recorded that Bitcoin is currently struggling to end a downtrend that has lasted for a month and a half. During that time, the major cryptocurrency has lost over 18% of its price.
According to Rekt Capital, Bitcoin has attempted to break out of this downtrend multiple times, including three times in the past three days. If Bitcoin eventually reverses the trend, the market leader could be poised for a full price recovery, reaching as high as $71,000.
At the time of writing, Bitcoin transactions at $58,170 with a 1.69% enhance over the past day. However, this soft price pales in comparison to the comparison which is up 30.81% to a price of $5,615 over the past 24 hours.
Featured image is from The Economic Times, chart is from Tradingview.com
