The price of Bitcoin is trying to recover after dropping to a multi-month low of $53,425 last Friday. In the past few days, it has rebounded and surpassed $58,000. However, despite this improvement, the cryptocurrency is still in a bear market, having fallen by over 20% from its peak earlier this year.
Bitcoin price will be a bit boring
The current Bitcoin price action has led many people to predict what will happen in the coming months. In a statement on Tuesday, Ki Young Ju, the founder of the on-chain analysis platform CryptoQuant, noted that the price will likely be a bit boring in the next few months.
This means the coin will not move in a bullish trend in this period. Instead, it will likely have some short-term bounces followed by some declines.
He attributed this to the fact that the Bitcoin miner capitulation was still ongoing. Historically, this capitulation ends when the daily average mined value is about 40% of the yearly average. This figure has now moved to 72%, meaning it has more room to drop.
In a previous statement, Ki Young Ju noted that the crypto market could absorb the ongoing dumps by the German government and Mt. Gox. He expects the price to bottom at about $47k and $47k and then potentially bounce back.
Andrew Pompliano’s view on Bitcoin
Meanwhile, Andrew Pompliano, a well-known crypto investor, explained why the Bitcoin price could also remain boring.
First, he noted that, historically, BTC underperforms during the summer period since many large investors are usually traveling during this time. As a result, they rarely have time to look at their crypto dashboards.
For example, Bitcoin’s price soared to a high of $65,000 in May 2021 and then dropped sharply during the summer period. It then bounced back and reached a record high of $69,200 in November.
Second, Pompliano cited Bitcoin as a highly illiquid asset since many people are long-term holders who rarely move their coins. As a result, an inflow of coins worth over $2 billion from the German government is expected to cause key challenges in its price movement.
Like Young, Pompliano believes that the Bitcoin price will be a bit ugly for a while before continuing its bullish trend in the long term.
Bitcoin price double-top risk
The main challenge with Bitcoin (BTC) is that it has formed two bearish chart patterns. It has formed a big double-top chart pattern at $73,800, with a neckline of $56,550. In most cases, this is one of the riskiest chart patterns in the market. If it works well, the coin could drop to $44,000.
Bitcoin’s price has also formed a small rising wedge pattern this week. Like the double-top, this is also one of the most bearish patterns. Therefore, the BTC price will likely have a bearish breakout in the near term.
