Bitcoin is currently experiencing a 23% dip from its peak price, with the majority of the losses occurring over the past week. Market analyst Benjamin Cowen has been closely observing the Bitcoin bull market support band (BMSB) as a crucial technical indicator to predict the asset's potential recovery later this year.

Drawing comparisons from historical patterns in 2013, 2016, 2019, and 2023, Cowen suggests that Bitcoin's Q4 2024 performance may hinge on whether it can surpass the BMSB in the upcoming weeks. In 2023, Bitcoin fell below its BMSB in August, remained there for several weeks, and then rallied significantly in Q4. However, in 2019, the asset continued to decline in Q4 after falling below this level.

Despite the current bearish sentiment and potential for another dip before consolidation, there is optimism for a possible upward movement in Q4. Bitcoin has recovered to $57,000 at the time of writing, following a dip to $54,320. There is support at $51,500 on the downside, but an upward move would need to break resistance levels at $60,000 to progress further. This week's US inflation reports could induce more volatility in already shaken crypto markets.