The cryptocurrency market is experiencing fluctuations, with Bitcoin currently trailing significantly from its peak value of $126,080. This decline, nearly 45% off its all-time high, has raised concerns among investors, as it indicates adverse market conditions over recent months. Analysts have pointed to the breach of the 365-day moving average as a key signifier of the ongoing bear market.
Current Status of Bitcoin Prices
Recent analysis by leading cryptocurrency researchers unveils that Bitcoin is currently 30% below its 365-day simple moving average (SMA). This revelation, shared by Julio Moreno from CryptoQuant on X platform, draws parallels between past bear markets and the current scenario.
According to Moreno, the bearish trend began when Bitcoin’s price fell under the annual moving average. This current dip is now recognized as one of the most severe in Bitcoin’s history, making it an essential topic of discussion for both investors and enthusiasts alike.
Historical comparisons show a stark contrast; in previous bear markets such as 2014 and 2018, Bitcoin’s price did not drop as significantly at this stage. During those periods, the price fell by only about 20%. However, in 2022, Bitcoin’s decline was more pronounced, hovering around 60% beneath its 365-day moving average.
This recent volatility is particularly noteworthy, especially as Bitcoin has been considered to be maturing into a more stable asset class. Nonetheless, it continues to show marked volatility at the onset of the bear market.
Determining when Bitcoin will hit its lowest point remains challenging. However, for a market recovery to transpire, certain conditions must be fulfilled. One crucial factor is the apparent decline in demand, which has worsened recently. The outflow from U.S.-based Bitcoin ETFs signals ongoing capital constraints that pose challenges for the market leader.
Analyzing Bitcoin’s Price Movement
At present, Bitcoin is trading at approximately $70,500, indicating a modest increase of over 2% in the past day.
