Bitcoin shows relative stability as summer approaches. However, this calm could precede a more difficult phase.

According to some crypto analysts, however, this calm could precede a more difficult phase. Between trader frustration, unfavorable seasonality, and excessive optimism

Bitcoin has displayed remarkable resilience and stability in recent times, particularly as summer approaches. However, some crypto analysts are sounding a note of caution, suggesting that this calm could foreshadow a more difficult phase for the crypto market.

According to CoinGlass, the third quarter is historically the worst performing for Bitcoin. The data from 2013 shows an average return of only 6.03% for Q3. In contrast, the fourth quarter boasts an impressive 85.42% return.

According to crypto analysts, Bitcoin could be set for a period of weaker performance in the third quarter of 2024. They attribute this to the Federal Reserve's sustained monetary policy. Despite the rising inflation figures, the Fed is expected to keep interest rates stable.

This strategy, while beneficial for the stock market, might diminish the appeal of Bitcoin as an alternative yield asset. Moreover, the arrival of summer holidays could lead to a decrease in trading volume, rendering the market more susceptible to sudden volatility.

With retail investors potentially taking profits during this time, the crypto market is poised for more unpredictable price swings.

In his latest analysis for Santiment, Brian Quinlivan, an analyst at the crypto analytics firm, highlights the growing anticipation and euphoria surrounding a new all-time high for the Bitcoin price. However, he cautions that history suggests such optimism is often followed by the opposite effect.

Indeed, Bitcoin is currently being sold at a 2.1% discount from its all-time high. But a technical resistance at $30,000 could prevent any further price increases. This situation might facilitate a potential catch-up by Ethereum, whose recent rebound is garnering attention.

Since April 12, Ethereum has experienced a surge of nearly 90%, displaying a more significant recovery compared to Bitcoin, which has risen by 50% over the same period.

If the bull cycle of the crypto queen is exhausting, the second-largest cryptocurrency could benefit. Some analysts, like Ben Armstrong, are even predicting a price of $3,000 for ETH within a few days.

As summer unfolds, the outlook for bitcoin remains uncertain. Historical trends, technical analysis, and psychological dynamics all come into play, and the market could yet surprise with a downturn. But if not, could it finally be time for Ethereum to take the spotlight?