Bitcoin and altcoins suffered a sharp decline over the weekend, which continues into the new week as their numbers continue to drop. Bitcoin’s price has now gone down from $75,000, its lowest level in the last decade of a decade.
This is a further fuel for the bearish predictions of this situation, and analysts say Bitcoin could officially enter ‘full-blown bear market’ if it doesn’t show accelerated recovery.
What are some of the reasons behind these declines include a slowdown in institutional demand for the cryptocurrency market, ongoing macroeconomic uncertainty (especially tensions between the US and Iran), and the release to ‘new part of Epstein Papers’ that is likely to be entering – as Bitcoin may enter – if it has entered.
Nick Ruck, director of LVRG research, said ‘Bittin could go into a full-blown bear market without there being ‘no short-term recovery’.
In the context of these current deterioration and selling pressure in the crypto market, Ruck blamed “a number of factors” as such as delays in negotiations regarding the US Crypto Asset Market Structure (CLARITY) Act or general economic uncertainty.
Similarly, the analyst said that investors have been less exposed to risky assets such as Bitcoin even though the Fed has chosen a crypto-friendly candidate as next chairman.
Investors risk-aversely face ongoing geopolitical conflicts and dollar instability, even though Trump has opted for the crypto-friendly name of next Fed chairman. The US economy is meanwhile struggling between rising unemployment and inflation. Paraphrast.
Unless demand is not recovering soon, technical indicators suggest that long-term selling pressure patterns are developing (i.e. BTC could enter a bear market if it continues to fall further) and the trend of buying pressures in this area is also coming into being.
Moreover, analysts Rekt Capital added that the declines will continue. But the analyst said that history is repeating itself, referring to account X “The recent declines have been following collision with bull market EMA (Emergency Moving Average)”.
Bitcoin has sank 17% since this intersection, the analyst said, adding that historical data points to further declines.
*This is not investment advice.
Thanks for reading Analysts Warn! “If Bitcoin (BTC) Doesn’t Do This Urgently a Bear Market Will Begin!”
