The Bitcoin market’s performance is disappointing since March 2024 when it peaked at $73,000. Instead of continuing to grow on the rally, top cryptos have faced continued consolidation along with a number of drops, which has frustrated many investors.
Bitcoin’s current price is 22.7% below its high from March. This has raised concerns that this could be the start of an even deeper bearish market. Market analysts are now questioning whether the decline is a sign of a deeper bear market. near-term outlook for the digital asset.
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Bitcoin Price Continues To Struggle, Why?
Recently, analysts from IntoTheBlock (a platform for market intelligence) shared their insights. insights X reflects the shifting sentiment. The analyst made the following comment in a blog post published earlier today:
Bitcoin remains in a downward spiral, and there is no sign of a significant upswing. Markets, which were once optimistic about a rally are now facing growing uncertainty, as institutional and retail interest appears to be decreasing.
Analysts asked: “is this just a quiet phase or the start of a prolonged bear market?”
IntoTheBlock analyzed the Bitcoin price fluctuations and factors that contributed to this lackluster movement in order to answer the question.
Mentioning “macro landscape,” Market intelligence revealed the possibility that a global economic recession is looming large. cautious outlook for risk assets Bitcoin is a great way to store and exchange money.
The experts noted that while many are expecting rate reductions soon, they may not have a positive impact on Bitcoin or other cryptocurrencies for some time. While this is happening, market sentiment will continue to be affected by the macroeconomic environment. investor confidence.
IntoTheBlock also touched upon the decline in interest in cryptocurrencies in recent months.
Market intelligence platforms report that search trends for Bitcoin and digital assets in general have decreased significantly, reflecting the drop of public interest.
This trend has extended to on-chain metrics, where the number of new Bitcoin addresses remains low. It suggests that market participation is slowing. The trend is also evident in on-chain metrics. For example, the number of Bitcoin addresses has remained low. This indicates a decline in market activity.
Do You Need to Panic?
Analysts from IntoTheBlock believe that Bitcoin’s 2019 price movement could be similar to the recent downturn. It noted:
History of Bitcoin halves cycles suggests that it may be another post-halving drop, as we have seen in the past. Similarities to the year 2019Interestingly, analysts note that this current phase is very similar to 2019, when the markets also began to slow down following a high (locally). The market went through a long consolidation period before it turned bullish. Were we on the same course?
IntoTheBlock highlighted further that “other cycle data tells a different story.” According to the market intelligence platform, in recent weeks long-term Bitcoin owners have experienced new lows. These trends echo those seen after peak prices. Source: IntoTheBock previous market cycles.
This could indicate a’slowdown in the economy,’ according to IntoTheBlock. “prolonged cooldown” Bitcoins could be delayed by a phase significant price recovery.
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Analysts noted there were no answers definitive to the uncertainty in the market. Analysts 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
Chart created by TradingView, DALL-E.
“This article is not financial advice.”
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Source: www.newsbtc.com