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Bitcoin entered the bear market at the beginning of 2022 and has been moving within a downtrend since. The price has dropped consistently over the months, and we have not really seen any strong signs of a bullish reversal.
The crypto community is hoping that the reversal is just around the corner and badly wants this bear cycle to end. In the last month, we have seen Bitcoin get above the psychological resistance at $20,000 multiple times. Though the price has failed to stay above this level, it does give some hope of a reversal in the short term.
The bear market has lasted a little longer than some crypto experts were expecting, and traders are expecting a further drop in the near future. That is why the buying pressure has been quite weak lately.
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What to Expect Before a Bitcoin Bull Run?
If we take a look at the recent buying patterns for Bitcoin, we can clearly notice that there isn’t enough traction when the price falls. Many fundamentals were very telling that the bear market would not last this long for Bitcoin, but things did not turn out that way exactly. When a bear market prolongs, the decline in short-term buying becomes inevitable.
However, if we take a look at Bitcoin purchase data on the weekly and monthly charts, we can see that the buying percentage has been going sideways. This usually means accumulation, and there are also chances that the price can just take off from this zone.
Can We Expect More Dip?
The crypto market is highly volatile, and we cannot say with certainty that this is the end of the bear market. We can expect further dip from here on, and if that happens, we could witness another panic sell event for Bitcoin.
Market experts are hoping that such an event will not pan out, and some have also said that the bottom is already in for Bitcoin. If that were to be the case, we could soon expect a rally for Bitcoin.
Right now, Bitcoin is trading around the $20,000 mark and has recently broken above the resistance at $19,600. The price has shown some upside movement in the past week after going through a consolidation phase. However, the macro timeframes are still looking quite bearish for Bitcoin, and there is a possibility that the crypto market will see more drops in the near future. The recession also has had a great effect on the crypto markets lately.
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