Bitcoin bear market could last at least six months: Analysis

Bitcoin bear market could last at least six months: CryptoQuant CEO


Bitcoin could remain on a lower market for at least six months, according to the CEO of cryptocurrency Ki Young Ju, because the data on the chain show a lack of price movement despite the increase in capital entries.

Bitcoin (BTC) experienced a difficult start in April, falling at a three -week $ 77,077. In an article of April 5 on X, Ju pointed out how the current state of the Bitcoin Ours market is reflected in measures on the chain such as market capitalization and the ceiling carried out.

The CAP produced determines the actual amount of Bitcoin money according to portfolio movements, while market capitalization is based on the most recent price on exchanges. A lowering market is generally shown by stagnation or decline in market capitalization despite an increase in the ceiling carried out. This indicates that although capital enters the market, prices do not react.

Ju notes that a bull market occurs when modest capital increases prices. However, the current drop The trend is supported by the fact that even capital purchases do not increase the price of bitcoin. He adds that historical data show that a real reversal of the Bitcoin price generally takes at least six months, which makes a short -term rally unlikely.

According to Coinglass dataBitcoin has experienced its worst start to the first quarter since 2018, falling 11.8%. The losses in the first quarter historically had a mixed effect on the annual performance of Bitcoin. Covated fears caused a drop of 9.4% in 2020, but Bitcoin ended over 300% the year. However, the losses of the first quarter in 2014, 2018 and 2022 reported the end of the bull races and preceded the bears markets.

The recent decline occurs after President Trump has imposed new ones price who have triggered market volatility worldwide. Although Bitcoin has seen an increase in the continuation of the Trump election, its status of American economic coverage is now in question because of these new prices, which have raised a recession. Bitcoin resilience in the face of economic uncertainty will be tested in the coming months.



Post Comment