Bitcoin Patience

It is easy to tell the story of Bitcoin’s price movement this year. We first saw a nearly parabolic rise in price following the ETF approval. Bitcoin's value then fluctuated between $60,000 and $70,000 for several months. Momentum was building up for a breakout either upwards or downwards. The more the traditionally slower summer months approached, the less likely another upward move became. Now that we have seen a clear break below $60,000, any bullish momentum is over. Now, patience is king.

This price movement was speed-run by Ethereum. In May, it saw rapid gains after its own unexpected ETF announcement. These gains have now been mostly reversed. The less you say about most Altcoins the better. Many have seen significant price drops on the back of no particular rally of their own. In this bull market, most Alts did not see anything that would resemble what crypto traders call an "altcoin cycle". Coins that had experienced run-ups leading up to March, such as Celestia, saw their gains evaporate since. Many traders have been disappointed by this, as they heavily bet on altcoins following the Bitcoin rally.

Memecoins were the only mania that was strong in this cycle. Dogwifhat, Bonk, Pepe and the likes saw significant growth. This hype also peaked in March. WIF has fallen 65% since its peak, BONK by 52%. In the current market climate, there are no winners. Celebrities entering the market with their own memecoin launches turned out to be the usual top signal.

It is important to determine if the current dip is just a pause in a bull run or if it is its end. In the crypto market, summer slowdowns have a long history. There are more good things to come. The Ethereum ETF is about to launch. Bitcoin's ETF, despite a slew of bad news, continues to see inflows. But the combination of the sell pressure from the German government's ongoing sales of seized Bitcoin over the last week and the imminent Mt. Gox coin release are the bad news which the market does not currently need.

With this price action in mind, traders position themselves accordingly. For those who missed out on the rally in the first half of the year, the prices and valuations have started to look more attractive. Fundamentals never changed either. The market is hoping that autumn will bring back some joy and that the bull will continue after a brief summer dip. At the same time, Bitcoin is now fighting to reclaim the $60,000 range. Should that fail, more downside can be expected. For long-term bulls, patience is now king.