Bitcoin (BTC) Is Going Through a Short-Term Decline, but Experts Believe the Overall Bull Market Is Still Strong

Bitcoin is going through a short-term decline, but experts believe the overall bull market is still strong. Axel Adler Jr., a well-known crypto analyst, explains that this phase is only a temporary event. He says it is not a sign of a major market downturn.

Cryptocurrency behemoth Bitcoin (BTC) is currently juggling a short-term decline with the experts' view that the overall bull market is still strong. As renowned crypto analyst Axel Adler Jr. points out, this phase is only a temporary event in the broader scheme of the market.

Bitcoin Demand Seen Falling By 140K BTC

In a recent analysis, Adler Jr., a well-known crypto analyst, focused on the market trends observed in Bitcoin. His analysis highlights a loss in demand for Bitcoin, summing up to 140K BTC. These recent market losses stand as lower than observed during previous market dips.

The previous market downturns caused Bitcoin demand to decrease by 268K BTC and another 437K BTC for the same event. The bigger drops created a more substantial market effect. The recent market downturn manifests as a momentary reaction that requires further inspection to qualify as a significant market crash.

"It is noteworthy that the market has recovered from prior instances of demand decreasing by 268K BTC and 364K BTC. Nonetheless, the smaller decrease in demand might not have as strong an impact on the market. This becomes particularly relevant when considering that the market withstood a steeper decline during the earlier stages of 2023, recovering to reach new all-time highs in the latter part of the year."

The analysis further explains the main factors driving Bitcoin price movements. It reveals that the decrease in Bitcoin price was mainly due to investors pulling profits after Bitcoin surpassed its previous peak value at approximately $109K.

Moreover, the analysis integrates the broader macroeconomic environment with market conditions. The report by Adler Jr. highlights the role of the U.S. Federal Reserve's monetary policy in shaping the market trends.

With the Federal Reserve applying stringent monetary rules and inflation levels remaining high, the markets are experiencing pressure. The changing rate forecasts from investors are applying more pressure on Bitcoin and other volatile assets.

The analysis concludes by noting that Bitcoin price history has established numerous identifiable market patterns. The period between early 2021 saw Bitcoin reaching $60K before experiencing a sharp price drop.

Bitcoin prices stabilized in the later part of 2021 before experiencing another decrease during 2022. Bitcoin experienced its most powerful growth pattern in 2023 and 2024, which resulted in crossing historic price milestones.

Key Bitcoin Demand Declines Over The Years

The market has observed multiple key declines of Bitcoin demand throughout the years. The Bitcoin market suffered a weakening effect when BTC demand decreased by 268K during the early months of 2023.

In 2023, Bitcoin endured another devastating price decline when a massive 437K BTC demand collapse triggered a significant market drop.

Recent Bitcoin trading data shows a 140K BTC withdrawal, which might trigger more short-term volatility in mid-2024. The market shows signs of future Bitcoin recovery according to past indications, despite its current selling conditions. The market appears likely to generate a new upward movement based on previous patterns.

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