Bitcoin’s (BTC) price has experienced a short-term recovery, making attempts to secure substantial gains above the $29,000 level while the asset maintains a sideways trading pattern. As the market anticipates a potential price rebound beyond the $30,000 mark, historical data suggests that Bitcoin might encounter a bumpy ride in the upcoming months.
In particular, an analysis by prominent pseudonymous crypto market analyst Fiery Trading shared in a TradingView post on July 26 indicates that Bitcoin could be in for challenging months during the third quarter. The analysis suggests the asset has been facing bearish performance during its pre-halving phase.
According to the analyst, the cryptocurrency has historically experienced a downturn during this time frame, with all three pre-halving years showing a significant price drop, surpassing 20% at some point.
The analysis indicates that a potential 20% drop from the current monthly open could result in Bitcoin’s price declining to $25,000.
“As seen on the chart, Bitcoin’s performance has ALWAYS been bad in the third quarter. During all three pre-halving years, the price dropped over 20% at some point. As of today, BTC is down a little over 4%. A 20% drop from the monthly open would bring Bitcoin back at $25,000,” he said.
Bitcoin makes minor recovery
Amid the analysis, Bitcoin made minimal gains, seemingly unfazed by the recent Federal Reserve decision to raise interest rates by 25 basis points. However, it still lags significantly behind its peak in July at $31,800.
Interestingly, the cryptocurrency appears to remain relatively unaffected by macroeconomic events despite witnessing more significant price fluctuations over the past year due to such events.
As interest in Bitcoin’s future performance persists, Finbold utilized Google Bard, a generative artificial intelligence (AI) platform, to predict the asset’s valuation. The tool highlighted factors that could potentially influence Bitcoin’s price following the 2024 halving event, known as a bullish factor.
In addition to the AI prediction, financial experts shared their projections for Bitcoin’s price by the end of 2023. According to Finbold’s report, these experts believe that Bitcoin might reclaim trading levels near the $40,000 mark.
Bitcoin price analysis
By press time, Bitcoin was trading at $29,429 after making minor gains of over 1% in the last 24 hours. On the weekly chart, Bitcoin is down around 1.5%.
As Bitcoin faces a short-term correction, the asset remains among the biggest gainers of the year at almost 80%.
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