Is the Bitcoin Bear Market on the Horizon?
Recent market data suggests that Bitcoin may be on the verge of entering a bear market. With the cryptocurrency facing its fifth consecutive weekly close in the red, this pattern has historically only been seen in bear market environments. Despite the mild nature of the pullback compared to previous bull markets, analysts are paying close attention to the current market conditions.
A Slow But Steady Pullback ๐
Twitter user MisterCh0c pointed out the concerning pattern on Monday, sparking debates among bullish followers. The recent drawdown, which has been ongoing throughout April, has seen Bitcoin drop roughly 12% from its weekly high of $71,400 on March 31 to around $63,000 on Sunday.
- Lead Glassnode analyst James Check noted that Bitcoin has only declined by a maximum of 20% from its peak of $73,000 this cycle.
- brett_eth highlighted that in the past, 4 consecutive red weekly candle events have occurred in bull markets, with some instances happening after Bitcoin halving events.
What About the ETFs? ๐ค
Despite pullbacks being a common occurrence in bull markets, the Bitcoin sell pressure has extended to the newly introduced Bitcoin spot ETFs. These funds have witnessed significant net inflows amounting to over $12 billion since January, but inflows have slowed down in recent weeks, with outflows from the Grayscale Bitcoin Trust (GBTC) surpassing inflows to other Bitcoin ETFs.
- Macro investment analyst Jim Bianco suggests that โdegen retailโ investors have been the primary buyers of Bitcoin ETFs, indicating a bearish sentiment as they may quickly pull out of the market at the first signs of trouble.
- Bloomberg ETF analyst Eric Balchunas argues that most investors have not disclosed their ETF holdings in filings yet and it takes time for advisors to engage, pointing out that BITO, the Bitcoin futures ETF, is 40% owned by advisors after 30 months.
Hot Take: Keep a Close Eye on Market Trends ๐ฅ
As a crypto enthusiast, itโs essential to monitor the evolving market trends and data to make informed investment decisions. Stay vigilant about potential shifts in the market sentiment and be prepared with a strategic plan to navigate through various market scenarios.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.