Have We Entered The Crypto Bear Market? 

After recording a new record price in March 2024, Bitcoin started sliding and dropped below the $60,000 mark in almost one month since breaking its all-time high. This decline also pulled the entire crypto market as many altcoins wiped months of price growth in the span of one week.

These events took place a few days before the anticipated Bitcoin halving and the Middle East conflict, which many experts attributed to the crypto bear market.

Whether it is a Bitcoin correction or a bear market, bulls need to clear the $64,000 and the $68,000 resistance areas to avoid a market meltdown. So, what is actually happening? Let’s find out.

Crypto Bull and Bear Market Trends

After a thriving bull market in March 2024, April was a trembling period for cryptocurrencies. After reaching a new price level of $73,000 in March, Bitcoin slumped under $60,000 by mid-April, wiping the hopes of short-term holders and market bulls.

Ethereum was experiencing massive growth as the coin price exceeded $4,000 and seemed to be heading towards its previous record price of $4,600. BNB, Solana, and other altcoins also had their prices doubled in March, and the market was overheating.

However, all these gains were erased as Bitcoin lost $10,000 of its value in a matter of days, and Ethereum returned to $3,000 under massive sell-out and account liquidation pressure. So, what is happening?

Crypto Market Analysis

One of the main reasons for this meltdown is the escalating tension in the Middle East between Iran and Israel, which has created fear among traders and changed investors’ preferences. During conflicts, the demand for oil and USD increases, pulling the market price higher and making them more lucrative.

Therefore, many switched their market positions from crypto to oil and USD-based currencies, which caused a massive sell-off in the market.

The other event is the Bitcoin halving, taking place on April 19-20. Crypto experts describe the current market movement as a natural cycle of every halving, which also happened in the 2021 BTC halving.

In fact, in previous times, the Bitcoin price saw price pullbacks of 30%, meaning that the BTC price today is still way above its 30% retracement level before the halving event.

Price Correction vs Bear Market

Experts prefer to call it a correction rather than a crypto bear market simply because it has only been a few days since this drop, and also, the upcoming Bitcoin halving will dynamically increase the coin price. 

When the BTC supply and mining rewards are cut in half, prices will automatically increase, giving short-term holders hope for another period of recovery. Supporters of this idea back it with the crypto fear and greed index, which points at 65 and indicates a “buy” sentiment.

Conclusion

The crypto market is experiencing a major decline, pulling most coins from all-time highs to 10%-20% price reversals. More prominently, Bitcoin has slid down to $63,000, $10k less than its record price one month earlier.

However, it is still too early to consider it a crypto bear market, as this decline is mostly triggered by geopolitical reasons and speculations of the upcoming Bitcoin halving. Bear market advice says that only after Bitcoin stays in the $55,000 price range can we talk about a bearish sentiment, and most of what we are seeing now is a natural retracement to external factors.