Bitcoin has been on a roll in July, climbing out of its June slump and reaching new monthly highs. But is this just a temporary blip, or is Bitcoin poised for a sustained rally? Let’s look at some historical data to see what might happen.
Bitcoin’s History Repeats Itself?
Bitcoin has a tendency to follow certain patterns, like the four-year cycle of bull markets. Looking at monthly performance can also be a good indicator of what might happen next.
A Tale of Two Quarters
The first quarter of 2024 mirrored the first quarter of 2023, with Bitcoin showing positive returns in January, February, and March. But things took a turn in the second quarter. Each month saw the opposite of what happened in the same month in 2023. For example, Bitcoin gained 2.81% in April 2023, but dropped 14.76% in April 2024. This pattern continued in May and June.
July’s Upward Trend
So far, July 2024 is following the trend that started in the second quarter. Bitcoin is already up 7.27% this month, compared to a 4.02% decline in July 2023. If this pattern continues, Bitcoin could finish July in the green.
August’s Potential
August 2023 saw Bitcoin close out the month with an 11.29% loss. If the current trend holds, this could mean a potential price increase in August.
The Verdict?
While historical data can be helpful, it’s important to remember that Bitcoin is a volatile asset. There’s no guarantee that the current trend will continue. However, based on the recent performance and historical patterns, Bitcoin might be poised for a strong finish to July and a potentially positive August.
