Bitcoin's Summer Rally May Be Short-Lived

Bitcoin's recent 10% gain in July has investors wondering if this is just a relief rally or the start of something bigger. According to crypto analyst Benjamin Cowen, historical midterm-year patterns suggest that this rally may be temporary, with a potential pullback expected in August or September.

Rising U.S. Treasury yields could add pressure on Bitcoin, increasing the risk of a correction later in the third quarter. This trend is similar to what happened in 2018 and 2022, when Bitcoin saw significant gains in midterm election years but followed up with declines in subsequent months.

Investors should watch for resistance levels and market signals as the summer progresses. Key support levels at $60,000 for Bitcoin and $1,686 for Ethereum are under threat, and if they fail, prices could drop even further.