The Bitcoin bull-bear market cycle indicator, which tracks investor sentiment phases, has flipped to signal bullish conditions, following three days of flashing red as Bitcoin's price plummeted to levels not seen since February. This indicator, which hadn't signaled a bear market since January 2023 shortly after the FTX collapse, is now suggesting that Bitcoin is still in a bull market despite the recent price dip.
Bitcoin's Price Dip and Recovery
Bitcoin's price fell below $50,000 on Aug. 5, which was called "Crypto Black Monday," marking its first drop below this key level since February. The asset then traded below the critical $60,000 level until Aug. 8. However, at the time of writing, Bitcoin is trading at $60,732.The quick reversal in the Bitcoin bull-bear market cycle indicator suggests that the recent price dip might have been a bear trap, where experienced traders sell Bitcoin in a controlled manner to temporarily lower the asset's price and trap short-sellers.
Analyst Opinions on Bitcoin's Future
While some analysts believe that Bitcoin's recent downturn mirrors previous trends before bull runs, others are more skeptical. Markus Thielen, head of research at 10x Research, stated that to ideally time the next bull market entry, they aim for Bitcoin prices to fall into the low 40,000s.Ark Invest, Cathie Wood's investment firm, reported that Bitcoin's most important price supports are at $52,000 and $46,000. However, veteran trader Peter Brandt explained that Bitcoin's "decline since halving is now similar to that of the 2015-2017 halving bull market cycle," suggesting that a bull run may follow.
