The year 2021 started off as a major boost for the crypto market. Almost every other crypto token flew in the first quarter of this year. Bitcoin along with other altcoins experienced a massive upsurge in the price. A lot of clash was flowing into the market, and the investing sector was showing deep interest in the market proceedings. Bitcoin and Ethereum almost double off in their prices, and peaked off in the month of April.
However, ever since that, the market has suffered from a bearish outlook, putting pressure on the investing and trading community. The prices of almost every crypto token has decreased by more than 50%.
The experts and analysts have predicted that the crypto market is quite likely to stay under a similar sell pressure for the coming few weeks.
The market analysts dwelled on the opinion that this is currently a premature bear market. It can also imply that another 20% drop in the market can be expected.
However, data analysis and predictions indicate that this bearish trend might not sustain for as long as it was earlier expected.
Predictions about the market benchmark – Bitcoin
Bitcoin is not only the most popular cryptocurrency, but it is also the flag-bearer of the crypto and blockchain realm. The dominance of Bitcoin is probably the most significant classification of the cryptocurrency market. Almost every crypto token and altcoin is somehow related to Bitcoin, and has a strong correlation with the crypto giant.
Currently, the value of Bitcoin is around $34,400. Bitcoin touched a low of $29K last week. Even though its current value is higher from where it started this year, it is still quite low from its all-time high of over $64,000. However, in the current context of the market, a 20% dip in the market is relatively common, for the coin to make a move upwards. Data analysis has shown that Bitcoin always performs better following a 20% decrease in its value.
The market charts indicate that the latest bullish trend of Bitcoin ended in the mid of April. Since then, bitcoin has experienced a decrease in its value. Historically, such bearish trends after a bullish run span over several months. But this time there might be a chance for an early recovery of Bitcoin. However, Bitcoin is not expected to surpass its all-time high within a few days. Still, it can make a pretty reasonable recovery, inducing a positive trend in the rest of the market.
On the other side, a counter argument suggests that Bitcoin does not have the fundamentals for this, as it does not represent a claim on cash flows. Therefore, the analysis for Bitcoin cannot be based upon on any particular law. It needs a study of network data along with the market data to have a better analysis and insight of Bitcoin.
Wait and watch?
The market is currently highly unstable, showing the signs of a major sell-off at one point. At another point it indicates a major investing interest from the whales of the crypto world. Therefore, it is essential for Bitcoin to overcome close resistance levels and achieve nearby goals. This will also help other altcoins to make a progress as they normally follow a trend set by Bitcoin in the market.
Young and amateur coins along with meme coins are currently experiencing a hard time in the market. Even the coins of reliable projects like ADA and XRP have suffered a downfall. This is primarily the reason that it is not advisable for traders and investors to jump on any conclusion, as every token is expected to test several ranges before forming a bullish trend. Hence, the crypto community should wait till the market settles. The month of July can play a decisive role in setting the tone for the market, and if Bitcoin hits the targets, the crypto hodlers can be in for a treat.