At the time of writing, Bitcoin is in a bull market and is holding strong, refusing to make new lows despite dropping by around 20% in June.
While there is hope that prices will rise in June, one analyst believes BTC is walking a tightrope. Buyers taking over means that BTC will print green values by September, bucking the historical trend observed over the past five years.
Can Bitcoin defy the odds?
Pricing data compiled over the past five years paints a worrying picture for the third quarter of 2023. share According to one analyst, historical data shows that Bitcoin often declines in the third quarter, with the average return on investment (ROI) being -5.21%.
If this sets a precedent, even if BTC is strong at the time of writing, the coin will likely end up in losses if it falls below the current rate.
Looking at the price chart, it is clear that buyers are in control, mainly due to the rally in Q1 2024. The price then surged to an all-time high, but then corrected and fell back to $56,800.
Though this line has not been breached, the bulls are struggling to maintain the momentum and the bears are relentlessly pushing the price down multiple times.
BTC to $300,000? On-chain activity and institutional adoption on the rise
Despite the historically weak third quarter, some analysts remain optimistic. Given X, one analyst think Based on the “power law” theory, BTC will soar to $300,000 by 2025. This prediction is almost five times higher than the spot rate, making it an overly optimistic forecast.
The analyst said fundamentals play a key role in the “power law” theory. Given Bitcoin's predictable growth patterns based on network activity, the only way forward is up, he said.
Further supporting this outlook, the analyst noted that Bitcoin's price has followed a power law for over a decade, meaning the coin's intrinsic value is independent of market hype.
A few other indicators support the potential for continued growth, such as data from IntoTheBlock: reveal The number of active Bitcoin addresses continues to grow, reaching levels not seen since mid-April.
ETF analyst Eric Balchunas said: Said Despite the recent drop in Bitcoin prices, inflows into spot Bitcoin exchange-traded funds (ETFs) remain strong, meaning investors expect prices to trend upward despite short-term price fluctuations.
Other Data Comes as Institutions Flock to Spot Bitcoin ETFs show Currently, the top 25 US hedge funds hold BTC in their portfolios.
Featured image from DALLE, chart from TradingView
