Time for a New Rally or a Further Crash?

TL;DR

Bitcoin experienced a significant correction, dropping below $54,000. While some see this as a potential end to the bull market, others believe it’s a normal part of Bitcoin’s growth and advise holding steady.
Many analysts predict a future rally based on historical patterns and the recent halving, although a few suggest the bull run might have peaked due to recent events like Bitcoin ETF approvals and meme coin trends.

The End of the Bull Market or Just a Normal Thing?

The primary cryptocurrency recently experienced one of its most severe corrections since the beginning of 2024. As CryptoPotato reported, its price briefly tanked below $54,000 for the first time since February.

And while some might take that as a sign that the bull market could be over, others argue that such declines are normal and part of BTC’s expansion path. The popular X user il Capo of Crypto noted the market’s substantial plunge but thinks investors should not “flip bearish.” 

“It’s time to zoom out and keep a cool head. Wrong for the moment, but holding strong. Time will tell,” the analyst added.

Crypto Tony shared a similar stance, outlining that the latest market crash can’t be compared to the overall bullish year (so far) for the cryptocurrency industry:

“Put things into perspective. If you are panicking, then you simply bought too high and are most likely at resistance with no plan.”

Mikybull Crypto and Rekt Capital are among the crypto enthusiasts predicting a BTC rally in the near future based on the asset’s historical performance. The former reminded of a similar correction in Q3 2023, which was later replaced by a fresh bull run.

Rekt Capital thinks the leading digital asset has yet to benefit from the BTC halving, which occurred in April of this year. The analyst noted that the price peaked more than 500 days after the halving in 2016 and the one in 2020:

“If history repeats and the next Bull Market peak occurs 518-546 days after the halving… That would mean Bitcoin could peak in this cycle in mid-September or mid-October 2025.”

The halving is an important event that happens approximately every four years and slashes in half the miners’ rewards for validating new blocks on the BTC blockchain. Historically, the process has been followed by a massive resurgence for the primary cryptocurrency and the entire market.

The Pessimistic Scenario

It is worth mentioning that some analysts suggested that BTC’s rally might be over. One example is the X user Ali Martinez, who assumed that the approval of Bitcoin ETFs, the meme coin mania, and the tokens introduced by celebrities could have been everything this bull run had to offer.

In this cycle, we’ve witnessed the approval of #Bitcoin ETFs, #memecoin mania, and celebrities launching their own #altcoins!

But what if that was it? What if we’ve already hit euphoria and are now feeling complacent, thinking, “we just need to cool off for the next rally”? pic.twitter.com/aTCuppjTPF

— Ali (@ali_charts) July 4, 2024