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Is Bitcoin Heading For A Bear Market? Analysts Weigh In On The Price Struggles

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Bitcoin’s market performance has been disappointing since peaking above $73,000 in March 2024. Instead of building on that rally, the leading cryptocurrency has faced a continued consolidation process alongside a series of declines, frustrating many investors.

Bitcoin is currently down 22.7% from its March highs, raising concerns about whether this could signal the start of a deeper bear market. The drop has shaken confidence, with market analysts now questioning the near-term outlook for the digital asset.

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Bitcoin Price Continues To Struggle, Why?

Analysts from IntoTheBlock, a market intelligence platform, recently shared Visions On X, reflecting the changing sentiment. In a post uploaded earlier today, the analyst noted:

Bitcoin price remains under pressure, with no significant upward momentum. The market, which was hoping for a price rally, is now facing increasing uncertainty as interest from both individuals and institutions wanes.

Analysts wondered:“Is this just a quiet phase or the beginning of a long-term bear market?”

To answer this question, IntoTheBlock first evaluated Bitcoin price struggles and the factors contributing to the lackluster price action.

Reporting to The Macro Scene, the market intelligence platform revealed that the possibility of a global recession is looming, creating a cautious outlook for risky assets like Bitcoin.

They noted that while many expect interest rate cuts to come soon, it may take time before these measures have a positive impact on Bitcoin and other cryptocurrencies. Meanwhile, until that happens, the broader macro environment is likely to continue to weigh on market sentiment and investor confidence.

Furthermore, IntoTheBlock touched on interest in cryptocurrencies, which has also seen a sharp decline in recent months.

According to the market intelligence platform, search trends related to Bitcoin and other digital assets have declined significantly, reflecting a decline in public interest.

Sharp drop in search trend for cryptocurrencies on Google | Source: 0xLoris on X

Even app ratings for major crypto exchanges like Coinbase have declined, indicating fewer users are engaging with the market. This trend has extended to on-chain metrics, where the number of new Bitcoin addresses remains low, indicating slowing market participation.

Should you panic?

While the current slide has raised concerns, analysts from IntoTheBlock see potential similarities to Bitcoin’s price action in 2019. They noted:

Bitcoin’s historical halving cycles suggest that it could be a post-halving bear market, something we’ve seen before. Similarities to 2019Interestingly, many analysts are pointing out that the current phase mirrors 2019, when the market also slowed down after a (local) rally. Back then, the market experienced a prolonged consolidation period before turning bullish again. Could we be on the same path?

IntoTheBlock also highlighted that “other cycle data tells a different story.” The market intelligence platform noted that in recent weeks, long-term Bitcoin holders’ balances have hit new lows, reflecting post-peak trends from previous market cycles.

Long term bitcoin holders.
Long-Term Bitcoin Holders | Source: IntoTheBock

According to IntoTheBlock, this could indicate a “prolonged cooling off” phase for Bitcoin, which could delay any major price recovery.

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Analysts noted that while the market is facing uncertainty, there are no clear-cut answers. They concluded:

There are no clear answers, but by looking at past cycles and current data, we can stay open to possibilities. Tracking on-chain data and macro factors – they will be crucial in determining what comes next.

Bitcoin (BTC) price chart on TradingView
BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on Tradingview.com

Featured image created using DALL-E, chart from TradingView

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