Analysts are scrutinising Bitcoin's (CRYPTO:BTC) performance amid a significant summer market decline, with the cryptocurrency down 23% from its recent peak.

Benjamin Cowen highlights the Bitcoin bull market support band (BMSB) as a critical indicator, drawing comparisons to historical trends in 2013, 2016, 2019, and 2023.

While Bitcoin faces challenges breaking above the BMSB, previous cycles suggest a potential recovery later this year, echoing patterns observed after previous summer dips.

However, sentiments remain cautious with warnings of prolonged consolidation before any significant rebound, especially amid heightened volatility triggered by upcoming US inflation reports.