Bitcoin (BTC) has experienced a positive July, recovering from below $58,000 to roughly $65,000, but historical data suggests a potential downturn in August. Analyst Ali Martinez notes that every August since 2022 has been negative, with drops of 14% and 11.3% in previous years. While some Augusts, like 2017’s 65% surge, have been exceptions, only three of the last twelve have been green. Meanwhile, analyst Rekt Capital highlights that July’s double-digit rally is a “far cry from previous rebounds,” indicating “progressively weakening support over time,” as the month’s gains fail to offset June’s 20% decline.
Bitcoin has surged by double digits in July, climbing from an early low of under $58,000 to a monthly peak of $67,000. However, analyst Ali Martinez has pointed to a painful historical pattern suggesting the bears may return in August.
“Enjoy the current rally,” Martinez stated, urging investors to consider the seasonal trend. Data confirms that every August since 2022 has been in the red, including a violent 14% drop in 2022 and an 11.3% dip in 2023.
Looking further back, there have been exceptions, such as a 30% rise in 2013 and a massive 65% surge in 2017. Despite these outliers, only three of the last twelve Augusts have yielded positive returns.
Fellow analyst Rekt Capital offered a different perspective on Bitcoin’s July performance. He acknowledged the cryptocurrency’s double-digit rise but argued it is a “far cry from previous rebounds.”
This assessment stems from the fact that Bitcoin’s defense of the $60,000 support and current price near $65,000 came after a painful June, where the asset tumbled by more than 20%. As a result, the current 11% to 14% surge cannot even offset the previous month’s losses.
Rekt Capital determined this pattern is a clear sign of “progressively weakening support over time.”
