Back to the list

Bitcoin Likely to See Further Price Slump After the Short-Term Recovery

source-logo  blockchainreporter.net 07 July 2024 22:34, UTC

The historical data signifies that the chief crypto token Bitcoin offers a surprising outlook in terms of price movement. A popular crypto market analyst TXMC has recently discussed the current status of Bitcoin and its potential move shortly. The analyst took to the social media platform X to provide the details about Bitcoin’s recent price recovery.

BTC reached its prior high before the halving and only 17 months after its FTX low. Extremely fast by its standards for a move that strong.

But also if you think about it, 2022 was the first Bitcoin bear that NEVER had even a 50% bounce rally. 2017 had three bear rallies of over…

— 𝐓𝐗𝐌𝐂 (@TXMCtrades) July 7, 2024

Analyst Says Bitcoin’s Recent Price Recovery Sees Parallels with the Historical Price Movement

TXMC noted that the crypto token made a rapid surge to reach the former high before the recent halving. The crypto asset witnessed the respective development only seventeen months following a huge low that occurred during the FTX slump. The analyst drew a comparison between the respective swift recovery and the historical standards of Bitcoin for such massive moves.

In this respect, the analyst pointed toward 2022 as a distinctive phase for Bitcoin. According to the analyst, contrary to the former bear markets, the year 2022 saw a substantial downturn. During that year, Bitcoin did not see even one 50% price bounce, as opposed to the former bear markets. Contrastively, the year 2017’s bear market went through 3 distinct rallies moving above fifty percent before touching the lowest point.

This Event May Lead to a Continuous Dip as Occurs in a “Dead Cat Bounce,” Says the Analyst

The historical statistics about bear markets disclose analogous price bounces until the year 2022. Keeping that in view, a crucial question arises about the recent upsurge in the price of the top cryptocurrency. The analyst pointed toward the possibility that the respective recovery event may represent a “dead cat bounce.” This term refers to a short-term recovery in an asset’s declining price, leading to a continuous dip.