Fluctuating bitcoin will hold down prices for longer.
Bitcoin recently rallied past $100,000. You might have heard that it’s “your last chance to buy Bitcoin below $100K”; well, that wasn’t it. It turns out the number one cryptocurrency was just dangling around, playing the bulls while the bears keep running the space. Altcoins also rallied shortly on Bitcoin’s trail. These gains were surrendered as Bitcoin slumped below $93,000 within 24 hours.
One thing is clear, we are in a bear season. How long this will last is not certain. A popular prediction is the market returning to green in a short while. The bears have reigned for the past few weeks and bitcoin’s price has been in an almost steady drop since hitting its current high of $107,000. That $120K party didn’t hold…yet. Bitcoin price has dropped below 10% since then as most altcoins record over 50% losses. A handful have been damaged beyond repair already.
Data from charts shows that Bitcoin is steadily making new lows while posting brief recoveries. Tangible crashes are preceded by smaller and short-lived gains. This trend started when bitcoin broke the $100,000 support and has continued since then at the time of this writing, bitcoin has slumped below $94,000 and continues to form short-term peaks that barely hold on for a while. Patterns like these indicate slow and long-running crashes.
Bitcoin’s downtrend also follows a relative fall in shares and stock prices. Altcoins usually respond to Bitcoin’s actions; this time is no different. These movements bear a good resemblance to early 2020 trends following the pandemic. In contrast, things might actually turn out differently with less drastic but slow crashes that last for a longer time.
It is hard to analyze macroeconomics but it appears that the majority of the world economy is enduring a pretty tough time. The crypto space is only getting its fair share of the presiding economic state.
The state of Bitcoin; pricewise has an even bigger effect on the rest of the crypto market. Thanks to the beaming AI agent narrative, projects in that category have held their heads high; but they are among a very short list of projects that haven’t crashed so badly in the past 90 days. Despite a whole lot of developments coming to the Ethereum blockchain, the price has struggled along with Bitcoin and other altcoins.
Global events have much effect on the direction of the market. With the edgy outlook of the global economy, bitcoin might stay down and fluctuate for a long time between $90,000 and $100,000. This movement is sure to draw the rest of the market down as well.
We could see these prices persist for a while and even go lower. But this period is a real test of your belief in the ability of cryptocurrencies to hold up against widespread sell-off and an army of investors looking to offload their investments and leave the space. There are discounts everywhere, every crypto asset is down badly and you can buy some of them at a good discount. It's the test time, feel free to make use of this low price, but this is not financial advice.
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