Bitcoin Declines Over 20% Since March High, Enters Technical Bear Market

Bitcoin has entered a technical bear market after dropping nearly 24% from its peak on March 14th. The cryptocurrency’s market value plummeted by over $156 billion this month due to a significant sell-off.

The recent price decrease, with Bitcoin losing more than $7,800 in July, follows a remarkable surge that saw it reach slightly above $73,000 in mid-March, a record high. Despite the downturn, some experts believe the current market conditions could lead to a potential surge in the upcoming months, pointing towards technological advancements, regulatory shifts, and broader economic changes.

An analysis by CCData suggests that Bitcoin has yet to reach the peak of its current growth cycle and is anticipated to surpass its all-time high this year. The approval and launch of spot bitcoin exchange-traded funds (ETFs) in the U.S. in January catalyzed the climb to the record high in March, attracting net inflows of around $14.41 billion.

Typically, Bitcoin peaks after a halving event, but this cycle has been atypical, as the record high was achieved before the halving due to strong enthusiasm around the U.S. ETFs. The lingering question now is whether Bitcoin has reached its peak for the current cycle with its recent trading within a certain range.

CCData’s research, which delved into past Bitcoin price patterns, indicates a potential for reaching new highs. The firm explained that historical trends revealed each halving event preceded a phase of price growth lasting from 366 to 548 days before reaching a cycle peak, with subsequent halving cycles taking longer due to market maturation and decreased volatility.

Given that the most recent halving occurred on April 19 this year, these historical timelines are yet to unfold fully. CCData also pointed out a noticeable decrease in trading activity on centralized exchanges for about two months post-halving in previous cycles, echoing the current scenario. This observation suggests that the ongoing cycle may extend further into 2025.