Since reaching a peak above $73,000 in March 2024, BTC market performance has been unsatisfactory.
Instead of building on this rally, the top cryptocurrency has faced continued consolidation and a series of declines, which has frustrated many investors.
Currently, BTC is down 22.7% from its March high, sparking concerns over whether this is signaling the start of a deeper bear market. The decline has shaken confidence and now calls into question the near-term prospects of the digital asset.
BTC’s price remains under pressure with no clear upward momentum. The market, once hopeful of a rebound, now faces growing uncertainty as both retail and institutional interest appear to be declining.
Many people can’t tell “Is this just a calm phase, or the beginning of a long bear market?
To answer this question, let’s first assess BTC’s price struggles and the factors that have led to its lackluster price action.
Referring to the “macro situation,” the market intelligence platform revealed that the likelihood of a global recession is high, which makes the outlook for risk assets such as Bitcoin cautious.
They noted that while many expect rate cuts to come soon, it may take time for such measures to have a positive impact on Bitcoin and other cryptocurrencies.
Meanwhile, until then, the broader macro environment is likely to continue to weigh on market sentiment and investor confidence.
Additionally, interest in cryptocurrencies has dropped sharply in recent months.
According to data from the market intelligence platform, search trends related to BTC and other digital assets have dropped significantly, reflecting a decline in public interest.
Even many major cryptocurrency exchanges have seen a drop in their app rankings, suggesting that fewer users are participating in the market. This trend has extended to on-chain metrics, where the number of new Bitcoin addresses remains low, indicating a slowdown in market participation.
So should you panic?
While the current downturn raises concerns, I see potential similarities to Bitcoin’s price action in 2019.
Historical Bitcoin halving cycles suggest this could be a post-halving drop like we have seen before. Similarities to 2019.
Interestingly, the current phase is similar to 2019, when the market also slowed down after a (local) high. At that time, the market experienced a long period of consolidation before turning bullish again. Could we be on the same path?
Other cycle data tells a different story. The market intelligence platform noted that long-term BTC balances have hit new lows in recent weeks, echoing post-peak trends in previous market cycles. This could signal that Bitcoin is entering an “extended cool-off” phase that could delay any significant price recovery#美国大选如何影响加密产业？ #以太坊基金会 #美联储何时降息？ #BTC走势分析
