Bitcoin’s Struggles Continue as Slow Price Recovery and Economic Conditions Frustrate Investors

Bitcoin’s sluggish performance is raising concerns among traders, with popular analyst Peter Brandt suggesting that the cryptocurrency may be too slow to meet historical expectations this time around.

Brandt notes that Bitcoin (BTC), currently priced at $56,415, has taken longer than ever to approach a new all-time high after its latest halving. In his latest analysis shared on X, he pointed out that the previous record from 2021 still holds when adjusted for inflation.

According to Brandt, Bitcoin is currently suffering from a “lack of energy.” Since its all-time high in March, BTC’s price action has frustrated both bulls and new investors. Despite hopes of a recovery, the market has yet to revisit its March peak of $73,800. Following the most recent halving event in April, an unprecedented amount of time has passed without a significant price resurgence.

“I analyze Bitcoin’s cycles differently than most,” Brandt explained, referring to the different phases of Bitcoin’s price cycles between major highs, lows, and halving events. “My cycle begins at the low of the previous bear market in November 2022. From there, I look at the peak of the cycle starting before the next halving in March 2024. So far, that high remains unbroken, and even the inflation-adjusted peak from the previous bull cycle holds firm.”

Brandt’s analysis underscores the importance of Bitcoin’s 2021 peak of $69,000, which may act as strong resistance in any future sustained recovery.

Despite his concerns, Brandt emphasized that this does not necessarily mean Bitcoin has been in a long-term decline since that time.

However, market sentiment remains bleak, and others agree that Bitcoin is still facing challenges. Onchain analytics platform CryptoQuant recently suggested that BTC price action is likely to stay “frustrating” even with upcoming changes in U.S. financial policy.

While a potential interest rate cut by the U.S. Federal Reserve on September 18 could provide a short-term boost, CryptoQuant contributor Crypto Dan believes that without a significant shift in market sentiment, Bitcoin may continue to experience slow movements well into 2024. He predicts it will take patience until at least 2025 to see a more substantial recovery.

One forecast even suggests that the Fed’s anticipated rate cut could drive Bitcoin prices down by as much as 20%.