BTC has shown similar stretches that coincide with previous bear markets.
As the quest to find Bitcoin’s floor price for this season’s bear market continues, BTC investors have resorted to analyzing previous charts of the world’s largest cryptocurrency to discover if they will get a clue.
However, most of these attempts to find Bitcoin’s floor price have ended in futility. Aside from individual investors, cryptocurrency analytics platforms like Glassnode have provided a series of data that suggest the performance of Bitcoin and whether its value is likely to plunge or soar.
Interestingly, a number of the gauges Glassnode uses to determine the performance of the top asset class are all pointing toward directions not seen before.
According to analysts from the cryptocurrency analytics company, Bitcoin’s current performance coincides with the November 2018 and March 2020 market stats, when the asset plummeted massively in value.
“The case for Bitcoin bottom formation is one grounded in observable dominance of strong-hand investors, historically significant lows in numerous macro oscillators, and a strong confluence with prices hovering within striking distance of several bear-market pricing models,” Glassnode analysts wrote in a blog post written by Bloomberg.
Bitcoin’s Recent Bearish Price Movements
Bitcoin has endured a terrible year following a series of events that have rocked the market this year. The top asset class has shredded over 71% of its gain since it peaked at an all-time high of $69,044, as it continues to struggle below $20,000.
Between April and June 2022, Bitcoin lost nearly 60% of its value, with many investors still eager to know when BTC would find its floor price.
A major determinant that has been attributed to the collapse of Bitcoin’s value is rising inflation. The Federal Reserve has continued to implement stringent approaches to curtail the rise in inflation, including raising interest rates.
Furthermore, a number of cryptocurrency projects, including Terra, Three Arrow Capital, and Celsius Network, crashed earlier, which contributed to the massive decline of Bitcoin’s value.
These actions have ushered in a bear market, forcing many investors to close their positions in various cryptos.
2022 Different From Previous Bear Markets
Interestingly, unlike the 2018 and 2020 bear markets, there seems to be a growing adoption of Bitcoin of late.
Brett Munster at Blockforce Capital said the ongoing bear market was different from what was expected. Unlike previous bear markets, there has been no large movement of funds from external wallets to exchanges, which usually suggests investors plan to sell.
However, Bitcoin accounts with non-zero BTC have steadily increased, suggesting investors’ confidence in the asset class.
“Unlike in 2018, when demand for Bitcoin did drop during that price crash, there are no signs of adoption slowing today. Despite the recent price crash, Bitcoin’s fundamentals are arguably stronger now than at any time in its history,” Munster added.
As Bitcoin adoption grows at a steady pace, Michaël van de Poppe, the CEO and founder of Eight Global recently predicted that BTC is gearing up for a rally to $30,000.
Time for a summer relief rally to $30K for #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) July 3, 2022
Meanwhile, digital currency analytics data platform Santiment noted that there has been a spike in Bitcoin whale transactions in the past week, following slight gains recorded in crypto.
🐳 The vast majority of the largest spikes in #Bitcoin whale transactions over the past week are occurring after small $100 to $200 $BTC price gains. Prices have subsequently fallen after each of these temporary increases in $100k+ or $1m+ transactions. https://t.co/ExrTHApPzZ pic.twitter.com/ZedwfJZBum
— Santiment (@santimentfeed) July 4, 2022