Bitcoin Enters Technical Bear Market After Dropping Over 20% from All-Time High
Bitcoin has dropped more than $7,800 in July alone, following its peak of just over $73,000 in mid-March.
Despite this decline, some experts believe that the current market conditions could lead to a significant surge in Bitcoin prices in the coming months, driven by technological advancements, regulatory changes, and broader economic shifts.
A recent analysis by CCData indicates that Bitcoin has not yet reached the peak of its current growth cycle and is expected to surpass its all-time high this year. The approval and launch of a spot Bitcoin exchange-traded fund (ETF) in the U.S. in January contributed to Bitcoin’s rise to a record high in March, attracting approximately $14.41 billion in net inflows.
Historical trends show that each halving event is preceded by a price increase phase lasting between 366 and 548 days, peaking just before the bull market’s zenith. As the market matures and volatility decreases, subsequent halving cycles tend to take longer. Given that the most recent halving occurred on April 19 this year, these historical timelines have not yet fully unfolded.
CCData also notes that, in previous halving cycles, trading activity on centralized exchanges significantly decreased within two months post-halving, mirroring the current situation. This observation suggests that the present cycle may continue extending into 2025.
In conclusion, while Bitcoin is currently experiencing a technical bear market, historical patterns and ongoing developments hint at a potential resurgence. Investors and market participants should keep an eye on technological, regulatory, and economic factors that could influence Bitcoin’s trajectory in the near future.
