Since the start of 2024, there has been a “bull market,” with Bitcoin rising to a high of $73.6K. But now that we’re hearing more rumours of a “bear market,” things have shifted. This is a shift following a 16% decline in Bitcoin’s value from its all-time high.
Observing the conversation, it seems that individuals are talking more about the market’s downturn and are less enthusiastic about purchasing. Strangely enough, this may be excellent news. The market performed the opposite in the past when most traders said it would decline and a new bear market would start. Some believe that prices may rise once further in anticipation of the upcoming Bitcoin halving event, which will see the reward for mining new bitcoins halved.
When several data points are analysed, it becomes clear that the price of Bitcoin is reaching a critical stage. It’s evident that the current fear of missing out (FOMO) is being eclipsed by pessimistic sentiment, which suggests that FOMO may really be the signpost of a future upswing.
Technically speaking, key areas are shown by the price charts. It’s best not to let Bitcoin go below its soft support level, which is now around $58,500. It did yesterday, but at about that price point, bears were unable to establish a footing. It may indicate that the market is stabilising if it rises back and remains above this line. But getting over the $62,000 hill is going to be difficult. Overcoming that can indicate a return to happier times.
What will happen to Bitcoin now? The upcoming months pale in comparison. Given that there won’t be as many fresh bitcoins available after the halving, it may increase. However, the market’s attitude is very dubious, and investors aren’t exactly racing to add new money to the system.
