The Secret Behind Bitcoin's Latest Drop

A bear is lurking in our midst.

Our neighbors have shared pictures and security camera footage of him knocking over trash cans and digging through garbage bags. He’s somewhat of a local celebrity.

He’s harmless… for the most part.

And we all hope he stays that way.

Well, stocks have maintained their bull charge in 2024.

The S&P 500 has already set 30 new all-time highs this year. The Nasdaq has set more than double that. And up until June 18th, the tech-heavy index had notched six consecutive record closes.

The last couple of days, tech has taken a moment to catch its breath. Though, I’m not concerned about a bear here… at least not yet. (An upcoming Tipping Point Profits will explain why).

But some investors are starting to worry whether a bear is lurking elsewhere. And it’s in one of my top sectors to buy from 2023 and 2024… Cryptocurrency.

Two Months to Nowhere

On April 19, Bitcoin underwent its fourth reward halving.

This is one of the most significant events in the crypto world. And it takes place every four years.

We also know that it ignites a massive rally in Bitcoin prices.

A quick recap…

In 2012, the first reward halving, Bitcoin soared 187%. It then rocketed 5,870% higher in 2013.

In 2016, the world’s largest cryptocurrency gained 124% before screaming another 1,338% in 2017.

In 2020, Bitcoin rose 302% and gained another 60% in 2021.

Every four years we see these wild runs because of the reward halving. It then fades and Bitcoin collapses roughly 60%.

It’s a repeating, profitable pattern.

Now, I began recommending Bitcoin here more than a year ago. And in 2023, I said every time it dipped below $25,000, it was a buy… an opportunity to add to your position.

Since then, Bitcoin is up more than 176%!

That’s not the issue though…

The issue is that since setting new all-time highs on March 14, Bitcoin has tumbled more than 13%.

And since the four-year crypto catalyst on April 19 - when Bitcoin opened at $63,510 – it essentially hasn’t gained any ground. As of this writing, its low of the day is $63,409.

That’s two months to nowhere.

Of course, it hasn’t been a flat straight line. We did see a brief dip to $56,000 and an almost nearly as brief pop to $72,000.

But where are the fireworks?

Where’s the rally?

Is Bitcoin dead?

Broken?

Or is a bear lurking, ready to maul the unsuspecting?

Summertime Sadness

At Tipping Point Profits, we follow trends.

We spy opportunities by tracking how share prices and assets move over time. And then look for repeating patterns.

The current move in crypto is part of a repeating pattern.

The truth is, June is a notoriously difficult month for Bitcoin.

We can see that since 2015, the world’s favorite crypto is currently splitting performances in June…

But since 2018, Bitcoin has ended the month with a loss four out of six years. And, at the moment, is down a little more than 5.5% in June.

Bitcoin’s recent bearish moves aren’t a surprise. It’s behaving as we expect. And that should bring comfort.

That’s the secret to our success here!

When everyone else starts to panic or feel anxiety welling up, we know there is opportunity. Not in our guts. But in our data.

We’re only days away from the start of July. One of the strongest months for Bitcoin (among other assets).

And as we pass the halfway point for 2024, history tells us things are about to get interesting.

I first began recommending Bitcoin in July 2016.

And the main reason was: the reward halving.

Every four years, I repeat the push. But looking to take advantage of lows and pullbacks.

Adding at $63,000 and less,

Matthew