Could Bitcoin Falling Below $30K Signal Bear Market? Analysts Ponder

The price of Bitcoin dropped to a new low this year, hitting $28,600 per unit on June 22nd, leaving analysts wondering if this is a signal for a bear market ahead. The leading cryptocurrency’s recent price dip below the $30,000 level has reignited discussions among top analysts whether BTC is gearing up for a bearish market or not.

Bitcoin Market Likely Ahead

Bitcoin’s brief drop below $30,000 this week has reignited talks of a crypto winter among leading analysts on whether we are headed for a period of overreaction or the market will correct itself in due course.

Losing over more than 50% from its all-time high, last seen just two months ago, certain experts are of the view that the bears are indeed in control.

For instance, during the digital asset’s previous bull cycle, of 2017-18, BTC’s price had a massive price drop that saw half of its value slashed in a few months, similar to like that of the situation in 2021.

Supporting this view, is the Co-Founder and COO of CoinGecko, Bobby Ong who believes the drop has officially marked the start of the 2021 bear market:

“Bitcoin trading at its current levels has already made the current market a bear one as it is down 50% from its ATH. The question now is how long and how deep the bear market will be.”

At the same time, Ki-Young Ju, the CEO of on-chain analytics platform CryptoQuant says that a Bitcoin bear market has now likely been confirmed.

I hate to say this, but it seems like the $BTC bear market confirmed.

Too many whales are sending $BTC to exchanges. https://t.co/DgmLukP4NU pic.twitter.com/AWJ8oVSUkQ

— Ki Young Ju 주기영 (@ki_young_ju) June 21, 2021

Another indicator that confirms Bitcoin’s downside is the BTC Death Cross which took place “at least five weeks ahead of schedule,” as pointed out by trader Rekt Capital.

Historically, #BTC would perform a Death Cross about 107 to 149 days after the initial crash

This $BTC Death Cross has taken place 69 days after the crash from ~$65000

By standards of history, this Death Cross has occurred ahead of schedule by at least 5 weeks#Crypto #Bitcoin https://t.co/ayWhDdfdaD pic.twitter.com/ZcOfKSOmSG

— Rekt Capital (@rektcapital) June 22, 2021

Bitcoin Correction Fueled Only for the Short Term

Another set of experts are of the view that Bitcoin’s fundamentals are good, and the market conditions of this year are very different from the last big crypto crash in 2018, indicating that the underlying fundamentals of Bitcoin are much stronger this year than they were during its last bear market in 2018.

“We are far from a bear market, only traders are freaking out over technicals seen on exchanges like volumes and price action.” said popular on-chain analyst and statistician Willy Woo.

While, Jason Deane, a Bitcoin Analyst at Quantum Economics sees the correction was mostly fueled by sentiment and momentum instead of actual fundamentals:

“This is most likely the case here, with that momentum almost certainly sparked, among other things, by the widely held (and incorrect) belief that lower hash rate is a hard drive for lower prices. It is true that this is a period of adjustment, but the network continues to run perfectly and will continue to do so, just as it was designed to do.”