The hype and bullish momentum around Bitcoin is beginning to slow down, according to BTC price analysts. Following the approval of Spot Bitcoin ETFs in January 2024, Bitcoin went on an all-time-high hype train. The price of the leading cryptocurrency by market cap exploded to north of $70,000 and stayed around that value for some time. Since then, however, the coin has settled in the $60,000-$65,000 range and is currently trading at just over $64,000.
With its current stagnant phase, analysts are turning bearish on Bitcoin, believing that its current bull market is coming to a close. Reflexivity Research co-founder Will Clemente noted on Tuesday that Bitcoin’s price, down 3%, is now close to the “short-term holder cost basis” of $63,800, per Glassnode data. “Don’t want to see consecutive days closed below,” wrote Clemente. “Typically serves as a good line in the sand for trends.”
If short-term holders of Bitcoin decide to panic sell, this could in fact cause Bitcoin to drop even more in price. Two of Bitcoin’s biggest achievements this year so far: the halving and ETF approval, are now in the past. Hence, there’s some worry that with no new bullish innovation, BTC can crash. Perhaps the full approval of Ethereum ETFs in July can spark some healthy competition for Bitcoin to rebound.
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Can Bulls Recapture the Bitcoin Market?
Despite the current bearish trend for Bitcoin, there is still some optimism that the cryptocurrency will surge once again to a new ATH soon. In a recent YouTube video, DonAlt highlighted the S&P 500’s March 2024 performance. The analyst explained that the S&P 500 index must have another leg up, which could make the coin reclaim its ATH. BTC usually moves in tandem with the US stock market as its prices are correlated. “If the S&P puts in another sun run like we’ve had and Bitcoin closes at this level ($65,500), I can actually see it go decent, as in I could see new highs even. But it is entirely reliant on the S&P going up I think at this point,” he said.
The current Bitcoin bull market may be slowing down, but the asset still has a healthy lead over competitors for the superior cryptocurrency.