The restoration of Bitcoin and different cryptocurrencies in the beginning of the yr led to hopes that the bear market had lastly come to an finish. Nonetheless, the market has since reversed with property within the area shedding a great portion of their Q1 positive aspects. With the present pattern, it’s greater than doubtless that the bear market isn’t over.
Historic Bitcoin Traits Recommend In any other case
During the last 4 bull markets that Bitcoin has seen since its inception, plenty of issues stand out. The primary is that the bear market following a bull market doesn’t appear to return to an finish till the yr of the halving.
The Bitcoin Halving is a vital occasion as a result of it cuts down the BTC block rewards in half, therefore lowering 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 the moment, the market remains to be a few yr away from the subsequent Bitcoin halving set to occur in 2024, and if historic traits 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 traits, there might nonetheless be extra ache for BTC to return. 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 doubtless 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 in the case of pitching their tents. Because of this, investor sentiment has drawn to a standstill because the Crypto Worry & Greed Index now sits at a impartial 52.
Which means traders are usually 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 provided that consumers are doubtless ready for BTC to revisit $20,000 earlier than getting again within the recreation.
For now, BTC remains to be ranging under $27,000, a assist stage that bears have efficiently flipped into resistance. Nonetheless, it’s nonetheless buying and selling above its 100-day transferring common, which suggests bullish momentum within the quick time period, albeit a short-lived one.