Bitcoin (BTC) recently dropped from $108,000 to $96,000 in just 48 hours, shaking the crypto market. While this triggered widespread panic-selling, analysts suggest the bull run remains intact. Here’s a breakdown of why this dip may be a natural consolidation within a larger upward trend.
Is the Crypto Bull Run Over?
Bitcoin’s 10% drop follows a significant 54% rally over the past 40 days. Analysts consider this decline a normal correction. Historical data supports this, as similar pullbacks often precede new all-time highs.
Key Support Levels Hold
The bull market structure remains solid, with key support levels intact:
- Weekly 21 EMA: $79,000
- Daily 200 EMA: $73,000
These levels suggest Bitcoin’s long-term uptrend is unbroken.
Impact of Federal Reserve Updates
Market uncertainty grew after Federal Reserve Chair Jerome Powell’s recent remarks. While Powell reiterated that the Fed cannot hold Bitcoin, many interpreted this as bearish. Despite this, the U.S. economy shows resilience:
- Unemployment Rate: 4.1%
- Inflation Rate: 2.75%, slightly above target
The Fed’s gradual rate cuts and slower quantitative tightening (QT) are expected to stabilize markets. Analysts believe these moves could set the stage for another crypto rally.
Altcoins Struggle, But Patience Is Key
While Bitcoin shows signs of stability, altcoins have been more volatile. Many saw steeper declines, prompting new traders to panic. However, experienced investors are using this opportunity to accumulate.
Tips for Navigating the Market
- Focus on high-conviction projects.
- Avoid leverage during uncertain periods.
What’s Next for Bitcoin?
Market experts predict Bitcoin will consolidate at current levels before resuming its upward trajectory. The next major price surge is expected once quantitative easing (QE) returns, possibly aligning with key Federal Reserve meetings in early 2025.
A Bull Run Breather
According to analysts, the bull market is far from over. This correction is a natural pause, not an end. Patience during these uncertain times often leads to the biggest gains.
