Economist Timothy Peterson pointed out a striking historical pattern regarding the Bitcoin (BTC) market in his assessment.
According to Peterson, the period he calls the “Bitcoin Bastille Day Rally” will begin on July 14, which the analyst believes could herald a significant recovery phase for Bitcoin.
Peterson, in his analysis based on historical data, noted that in years where Bitcoin underperforms, it typically experiences a strong rally starting around Bastille Day. He explained that this rally typically begins on July 14th and lasts until July 30th, noting that this two-week period is a critical time for Bitcoin to recoup its losses from the year.
However, this rise also comes with a warning for investors: According to Peterson, the ten-week period following this two-week recovery period stands out as one of the weakest performing periods for Bitcoin historically.
Peterson also noted that Bitcoin behaves like a “compressed spring,” arguing that historically, Bitcoin has seen an average rise of at least 16% in positive months. However, this year, this figure has only been 9% so far. This suggests that strong moves above 16% are possible in the coming positive months, according to the analyst.
*This is not investment advice.