Is Bitcoin Heading For A Bear Market? Analysts Weigh In On The Price Struggles
11 September 2024 - 9:00AM
NEWSBTC
Bitcoin market performance has been underwhelming since its peak
above $73,000 in March 2024. Instead of building on this rally, the
top crypto has faced continued consolidation coupled with a series
of declines, frustrating many investors. Currently, Bitcoin is down
22.7% from its March high, raising concerns over whether this
signals the start of a deeper bear market. The decline has shaken
confidence, with market analysts now questioning the near-term
outlook for the digital asset. Related Reading: Bitcoin Price Could
Extend Gains: Will Bulls Stay in Control? Bitcoin Price Continous
To Struggle, Why? Analysts from IntoTheBlock, a market intelligence
platform, have recently shared insights on X, reflecting the
changing sentiment. In a post uploaded earlier today, the analyst
noted: Bitcoin’s price remains under pressure, with no significant
upward momentum. The market, once hopeful for a rally, now faces
growing uncertainty as both retail and institutional interest
appear to be dwindling. The analysts asked, “is this just a quiet
phase or the start of a prolonged bear market?” To answer this
question, IntoTheBlock first assessed Bitcoin price struggles and
the factors contributing to the lackluster price movement.
Mentioning “macro landscape,” the market intelligence platform
disclosed that the possibility of a global recession looms large,
creating a cautious outlook for risk assets like Bitcoin. They
noted that although many expect rate cuts soon, these measures may
take time to affect Bitcoin and other cryptocurrencies positively.
Meanwhile, until that happens, the broader macro environment will
likely continue to pressure market sentiment and investor
confidence. Furthermore, IntoTheBlock touched on the interest in
cryptocurrencies, which has also been declining sharply in recent
months. According to the market intelligence platform, search
trends related to Bitcoin and other digital assets have
significantly decreased, reflecting a drop in public interest. Even
app rankings for major crypto exchanges like Coinbase have fallen,
suggesting fewer users engage with the market. This trend has
extended to on-chain metrics, where the number of new Bitcoin
addresses remains low, indicating a slowdown in market
participation. Should You Panic? While the current downturn has
raised concerns, analysts from IntoTheBlock see potential parallels
to Bitcoin’s price action in 2019. They noted: Historical Bitcoin
halving cycles suggest it could be a post-halving dip, something
we’ve seen before. Parallels to 2019: Interestingly, many analysts
point out the current phase mirrors 2019, where the market also
slowed down after a (local) high. Back then, the market experienced
a prolonged consolidation before turning bullish again. Could we be
on the same path? IntoTheBlock further highlighted that “other
cycle data tells a different story.” The market intelligence
platform noted that in recent weeks, the balances of long-term
Bitcoin holders have hit new lows, echoing post-peak trends from
previous market cycles. According to IntoTheBlock, this could
signal a “prolonged cooldown” phase for Bitcoin, potentially
delaying any significant price recovery. Related Reading: Bitcoin
To Break $100K By 2025? Experts Weigh In On Potential New ATH The
analysts noted that while the market faces uncertainties, there are
no definitive answers. They concluded: There are no clear-cut
answers, but by considering past cycles and current data, we can
stay open to possibilities Keep track of both on-chain data and
macro factors—they will be critical in determining what comes next
Featured image created with DALL-E, Chart from TradingView
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