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Bear market? Or why can bitcoin still rise in price?

Bear market

Bear market? Or why can bitcoin still rise in price?

Bear market, or why can bitcoin still rise in price? Bitxmi experts explained what to expect from the digital asset market by the end of the year and what factors can trigger the transition to a long stage of quotations decline.

On the morning of July 20, the bitcoin rate on the Bitxmi crypto exchange for the first time since June 22 fell below $ 30 thousand. Quotes of the first cryptocurrency dropped to $ 29.5 thousand, over the past day it fell by 7%. Since April, when Bitcoin reached a historic high of $ 64.3 thousand, the digital coin has fallen in price by 52%. The experts explained whether the current situation can be perceived as a bear market.

Deeply corrective assets

Cryptocurrencies, unlike classic financial assets, are deeply corrective from a technical point of view. The correction of digital assets can reach 76-78% of the growth without losing the uptrend.

“Even a fall in the price of bitcoin below $ 20 thousand will not indicate a change in trend and the onset of a bear market,” analysts say.

Bitcoin is now under pressure, both market and fundamental. Because of this, the cost of the cryptocurrency may decrease in the near future, however, the lower the rate falls, the more new participants will enter.

Growth is still possible

The coming months should be indicative, experts are sure. In their opinion, if the bitcoin rate does not resume growth by mid-autumn, then the worst scenario will be realized and the market will enter a “bearish” stage, which presumably will last until 2023. Otherwise, there is a chance to see the six-figure value of bitcoin by the end of the year.

“If we start from the growth model based on halving, then there are still chances for growth. The model itself shows its validity by regularly repeating patterns, ” the experts explain.

Halving is a halving of the block reward that occurs every four years. Initially, miners received 50 bitcoins, in 2012 this amount dropped to 25 coins, in 2016 – to 12.5. On May 11, 2020, it dropped to 6.25 bitcoins.

After previous halvings, the value of the first cryptocurrency has increased many times over. For example, after the first reduction in the miner’s reward, the price of the coin increased from $ 11 to $ 1.1 thousand (an increase of 9900%). After the second – from $ 600 to $ 20 thousand (an increase of 3233%).

A year before each of the three halvings, a smooth growth began against the background of expectations, and almost immediately after the reduction in the reward, the market effect triggered and the value of the token began its rapid growth.

In the worst case, the next “bear” market will end with a long consolidation at levels of about $ 10-20 thousand before the start of a new cycle of 2023-2025 against the background of the fourth halving in 2024, Bitxmi experts predict.

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Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.

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