Everyone has heard that history often repeats itself, and learning from the past is among the best ways to prepare for the future. The same goes for Bitcoin and crypto, and analysts often look at past bear and bull cycles to gain insight into how future price action may unfold.
According to historical Bitcoin monthly performance, and general market sentiment, the first-ever crypto is at a critical crossroads, and depending on how August performs, it could set the stage for the greatest bull run the world has ever seen, or it could send Bitcoin back down to the depths of the bear market once again.
August Will Confirm BTC Bull Market or Bear Trend Change
According to Wikipedia, the concept of “eternal recurrence” is the “idea that with infinite time and a finite number of events, events will recur again and again infinitely.” It was popularized by philosopher Friedrich Nietzsche who promoted the belief that accepting these recurrences, or “fate” was the key to happiness.
Throughout history, this belief that history repeats itself is present in everything from economic crashes, market cycles, and more. This is why even crypto analysts and Bitcoin investors often look at past market cycles to help predict the price action in future market cycles. Patterns are visible in all things and can help indicate subtle changes to a trend.
Related Reading | Daily Activities Like Grocery Shopping May Hold the Key to Crypto Adoption
New data provided by a prominent crypto analyst outlining Bitcoin’s historical monthly performance could provide clues to where Bitcoin may go next, however, the like the market sentiment currently, the data appears to be torn, and shows that even the historical data seems to suggest that Bitcoin is at an impasse, or critical junction in its lifecycle and August may be the deciding factor if the next bull run begins, or if Bitcoin retests bear market lows – or something in between.
Crypto at a Critical Crossroads, Shows Bitcoin Historical Monthly Performance
According to the data, August is the third-worst performing month for Bitcoin in its history, behind only December and January where the repetition of December tops leading to the following month wiping out much of the previous month’s gains skews things.
Ever wondered how $BTC performs during a certain months? Here is the historical monthly performance since 2012.
Lowest returning month: Jan. at -0.18% on average with 3 green & 5 red months.
Highest returning month: Nov. at 75.58% on average with 6 green & 1 red month. pic.twitter.com/nVNq9PkDGk
— ₿itDealer (@Bitdealer_) July 25, 2019
Interestingly, Bitcoin’s recent bull rally to $13,800 saw four green monthly closes in a row. The last time this occurred, was during April through August 2017. After that Bitcoin took a short pause and reached a new all-time high in the months that came after. The only other times Bitcoin had more than four monthly consecutive green closes, was during 2012 and 2013, when the crypto asset was still relatively worthless and unknown by today’s standards.
Out of seven Augusts recorded in the data, Bitcoin saw 3 green months, and 4 red. Should August close red it could mean two things: Bitcoin’s bull run is taking a short pause before reaching an all-time high, just like it did in 2017, or it could take on the performance after the most recent August close in 2018.
Related Reading | Bitcoin Price at $10,000 is in Danger As Bulls Begin to Lose Support
In 2018, after a green July, August closed red and was the start of six consecutive red monthly closes, the longest stretch of red in Bitcoin’s history. Bitcoin also wasn’t facing regulatory pressure and such criticism from the United States at that time.
Regardless of what happens next, Bitcoin is at an important moment in its history, and this month might indicate the trend for the remainder of the year, possibly beyond.
Credit: Source link