The restoration of Bitcoin and different cryptocurrencies initially of the yr caused hopes that the bear market had lastly come to an finish. Nevertheless, the market has since reversed with property within the house dropping an excellent portion of their Q1 beneficial properties. With the present pattern, it’s greater than probably that the bear market is just not over.
Historic Bitcoin Traits Recommend In any other case
Over the past 4 bull markets that Bitcoin has seen since its inception, numerous issues stand out. The primary is that the bear market following a bull market doesn’t appear to come back to an finish till the yr of the halving.
The Bitcoin Halving is a crucial occasion as a result of it cuts down the BTC block rewards in half, therefore decreasing the variety of new BTC being launched into circulation. This can be a bullish occasion and has at all times heralded the beginning of the bull marketplace for the cryptocurrency.
At present, the market remains to be a couple of yr away from the following Bitcoin halving set to occur in 2024, and if historic developments are something to go by, then the bear market is prone to persist via 2023 and into early subsequent yr earlier than the primary hallmarks of the bull run are seen.
Following earlier developments, there may nonetheless be extra ache for BTC to come back. Whether it is to lose round 85% of its all-time excessive worth because it did earlier than the final bull run, then the underside of the market has probably not been reached but both.
Every bull market started with a halving occasion | Supply: BTCUSD on TradingView.com
Investor Sentiment Stays Low
After the euphoria of the pump within the first half of 2023 died down, traders have been at a loss relating to pitching their tents. In consequence, investor sentiment has drawn to a standstill because the Crypto Worry & Greed Index now sits at a impartial 52.
Which means that traders usually are not doing something bullish like shopping for extra Bitcoin right now, so the bear market is persisting as sellers proceed to dominate. A return again into the greed territory would see costs rise once more however that is unlikely on condition that consumers are probably ready for BTC to revisit $20,000 earlier than getting again within the recreation.
For now, BTC remains to be ranging beneath $27,000, a help degree that bears have efficiently flipped into resistance. Nevertheless, it’s nonetheless buying and selling above its 100-day transferring common, which suggests bullish momentum within the brief time period, albeit a short-lived one.
