Bitcoin: Is the Bull Run Over?
Bitcoin recently took a dive, causing many traders who leveraged their trades to lose substantial amounts of money. It all stemmed from some uncertainty in the market related to global trade tariffs announced by Trump on Saturday.
The tariffs targeted major partners like Canada, Mexico, and China, which understandably spooked investors who were already on edge.
What Happened?
The uncertainty brought about by the trade tariffs made markets jittery, prompting investors to seek the safety of more stable assets, leaving high-risk assets like altcoins to bear the brunt. We've seen these altcoins drop as much as 20-40%, showcasing the volatility and risk associated with them.
To further understand what triggered the sell-off, one must note that crypto markets are open 24/7, unlike stock markets, which were closed when the tariffs were announced. This allowed crypto to be the immediate outlet for global market fears, leading to what we term a "flush out."
Is the Bull Run Over?
The pressing question on everyone’s mind is whether this marks the end of the bull run. Here's my take: I don't believe so.
"If we analyze market cycles, this current dip aligns closely with past trends, suggesting it's a typical correction rather than an end."
Viewing historical charts, the pink line representing our current cycle aligns closely with the past cycles of 2017 and 2020. The dip we're experiencing isn't overly alarming when put in perspective. Historically, Bitcoin has had larger corrections while continuing to follow its upward trajectory.
Analysis of Bitcoin dips over the past few years.
Analyzing Market Sentiments
Another aspect to consider is the performance of traditional market indicators, like the futures of the NASDAQ. Futures allow investors to bet on price movements even when markets are closed, thus often predicting movement in crypto markets. Recent losses of 1.74% in the NASDAQ, while notable, aren't as dire as broader Bitcoin declines.
This suggests that while the weekend drop was sharp, the overall health of the crypto market may not be as compromised as feared.
Current Situation and Outlook
Let's delve into Bitcoin's recent price behavior. Currently, we're seeing Bitcoin find some support around $91,000, despite some weekend volatility due to tariff announcements. If Bitcoin holds this support, we could potentially see a consolidation and eventual continuation of the bull trend.
Potential Scenarios
Let's look at possible market scenarios:
Scenario One - Recovery: If no further trade shocks occur, Bitcoin might stabilize mid-range before testing and breaking higher barriers.
Scenario Two - Further Decline: Should Bitcoin break below $88,000, it could spell challenges, testing supports further and possibly marking the end of the bull trend.
Regardless of the scenario, it's imperative to watch how the market adapts and reacts.
The blue lines indicate Shankar’s predictions on how Bitcoin recovers over the next few weeks.
Making Money in a Volatile Market
Despite the downturn, understanding market trends is key to making money. It's crucial to know when to trade. Many people struggle with day trading, which is why I founded Crypto Alliance. Mastering trading strategies can prepare you for market shifts, allowing for profits even in turbulent conditions.
For those interested in long-term investments, now might be a good time to acquire substantial coins like Bitcoin, Ethereum, and Solana at reduced prices, targeting gains when the market stabilizes.
Staying Informed and Strategic
Remember, always keep an eye on market boundaries. Knowing whether the current support around $92,000 holds can guide your next steps.
If interested, join Crypto Alliance, where I'll guide you through DCA (Dollar-Cost Averaging) strategies for Bitcoin — a potentially beneficial approach towards strengthening your retirement plans.
"I firmly believe that by the early 2030s, Bitcoin could hit $1 million, making savvy investing now more rewarding in the long term."
This is for informational purposes only and is not financial advice. Always do your own research and consult a professional before making any trading decisions.
For an in-depth look at these possibilities and to stay connected with cryptocurrency, join my mailing list at crypto.lifestyle.
Here's to a future where digital freedom meets meaningful change.
