The price is approaching $60,000 in a historical bearish context

Because it’s Bitcoin dumping? Bitcoin recently fell below $62.5k, hitting a new monthly low. Analysts note that while this price action is not ideal, it is not unusual for Bitcoin and altcoins. However, despite the sideways movement, this period is seen as a good time to position or reposition portfolios for future success. Major market declines should be seen as opportunities to add to quality altcoin positions.

Analyst Miles Deutscher recently discussed the current state of the cryptocurrency market, focusing on Bitcoin and altcoins. He gave several examples of why Bitcoin could fall.

Summer break: Reduced activity is typical of the summer months. Historically, the cryptocurrency market experiences a lull during the summer, even in bull years. According to reports, historically, third quarter trading volumes are much lower. Bitcoin trading volumes typically decline by more than 40% compared to the busiest quarter.

Miles said that altcoins underperformed Bitcoin in 2017. In 2019, the market peaked at $13,000 before undergoing a correction. During 2020, “DeFi Summer” occurred as investors were risk averse. In 2021, the bearish trend continued until Elon Musk’s tweet in July. The market slowed significantly in 2022 and moved sideways in 2023.

He added that many traders and funds reduce their activities in July and August, contributing to the market’s sideways movement. This period is often less clear from a macroeconomic perspective, but later in the year optimism usually returns, reflected in better conditions market performance in the fourth and first quarters.

Total 3 chart analyses: The Total 3 chart, which excludes Bitcoin and Ethereum, shows that altcoins are currently range-bound, moving sideways after a decline. Both the altcoin market and Bitcoin are in a range with lower volume and volatility than at the beginning of the year, especially during the March and April price surges.

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