Crypto market sentiment has held steady despite Bitcoin tumbling almost 2% over the past day to change hands close to the $105,000 price level.
The sentiment-tracking Crypto Fear & Greed Index posted a “Greed” score of 63 out of 100 on Wednesday, slipping one point from Tuesday, as Bitcoin (BTC) pulled back 1.79% in a drop to $105,560 after nearly reaching $108,000 the previous day, according to CoinMarketCap data.
Sentiment strong leading into historically poor Q3
Crypto analysts have speculated when Bitcoin might retest its all-time high of $111,970 reached on May 22. Optimism was high on Monday as its price hovered just below $109,000, before slipping into another short-term downtrend.
Bitcoin is trading at $105,560 at the time of publication. Source: CoinMarketCap
Some analysts noted that the third quarter, which began on July 1, is typically a weaker period for Bitcoin.
“From the historical data, this quarter is generally the slowest out of all, for both $BTC and $ETH,” crypto trader Daan Crypto Trades said on Tuesday.
Since 2013, Bitcoin has averaged a 5.47% gain during the third quarter each year, according to CoinGlass. If that trend holds, it would place Bitcoin’s price around $111,000 on Sept. 30 — just shy of its all-time high of $111,970.
Daan said the weaker performance during the quarter is due to the “slower summer months where there’s generally less action, volumes [and] liquidity.”
Bitcoin’s Q2 performance matched average gain
Bitcoin closely matched its historical average performance during the second quarter, which ended June 30, posting a 31% gain at $108,383 — approximately 4% above the 27% average Q2 return since 2014. However, Bitcoin ended the month of June with its highest monthly candle.
Related: Strategy buys $531M of Bitcoin as sentiment rebounds above $107K
Other indicators signal that the market is still heavily favoring Bitcoin. Bitcoin dominance is sitting around 65.5%, up nearly 13% so far this year, according to TradingView.
Meanwhile, CoinMarketCap’s Altcoin Season Index, which bases the performance of the top 100 altcoins relative to Bitcoin over the past 90…
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