Markets
Is the bear market coming to an end?
The cryptocurrency market is currently experiencing significant turbulence, leaving many wondering if the end is near. According to Rekt Fencer, founder of X Daothe crypto community is in a depression phase, similar to the state of the market in June 2023.
Despite the prevailing sentiment of pessimism, a closer look at recent data reveals potential indicators of recovery. Over the past few months, altcoin prices have fallen by 30-70%, sparking widespread pessimism among investors. Nevertheless, emerging trends suggest that a market rebound could be on the way.
Echoes of June 2023
The current market sentiment is very similar to that of June 19, 2023, when major cryptocurrencies were also down. On that date, the total market cap was $1.063 trillion, with Bitcoin worth $26.5 thousand, Ethereum $1.7 thousand, and Solana $15.40.
These numbers are comparable to the depressed levels we are seeing today. According to Titan of Crypto, this situation could signal a major bear trap.
Factors behind the decline
Several factors have caused the recent market drop. These include: Germany sells its BitcoinsBitcoin’s release from the Mt. Gox transaction and Bitcoin miners selling their holdings to stay profitable. Despite these issues, major investors are holding on to their Bitcoins, showing strong long-term confidence in the cryptocurrency
Bullish indicators
Bitcoin’s dominance, which shows its market share compared to other cryptocurrencies, has been demonstrated signs of a possible uptrend. Although the $58,000 support level has been lost, the $50,000 level could provide a cushion. Market sentiment typically rebounds when Bitcoin is considered overpriced, suggesting that a reversal could be near.
What drives markets?
There are several upcoming events and factors that could trigger a market rally. Miner capitulation could signal a trend reversal as miners stop selling their holdings. Additionally, the potential Ethereum ETF Approved could generate new interest and investment in the market. Changes in the liquidity of stablecoins, particularly USDT, are also important indicators of market demand.
Looking ahead, global liquidity is expected to change in Q4 2024 and early 2025, which could have a positive impact on the cryptocurrency market. Comparing this to the summer of 2020, when altcoins surged after a dip, we can think that we are on the right track. on the brink of a similar bull run.
At the same time, by focusing on long-term trends and upcoming events, investors can better manage current volatility and prepare for potential gains.
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