Under the pretext of a bullish market condition, July was supposed to be one of the best months for investors. However, the first two weeks had a completely different picture, starting with a crash in the beginning where the entire crypto market struggled. The market sentiments entered the fear zone, the Bitcoin price dropped below $54K, the global market cap dropped to $1.97 Trillion, and much more happened with that crash.
But that was not the worst, as Bitcoin has now entered the extreme fear zone for the first time in 18 months. Per the fear and greed index, user sentiments are at 25, which is an extremely worrying situation for this crypto. However, this was not a sudden drop as Bitcoin was in fear for days, with 29 on the index chart.
Analyzing The Bitcoin Performance
Bitcoin had quite a journey this year, where it peaked at an all-time high of $73,750.07 on March 14. With time, the predictions surpassed the $100,000 mark, especially with the BTC halving in April. The previous halving reports have indicated a major bull run after a few months, with a minor correction right after the event.
However, BTC has made multiple corrections, and the most recent was this month, which led to the market crash. Earlier in the beginning of the month, the selling pressure surged over the roof with the German government selling their seized Bitcoin, Mt Gox returning the hacked tokens from a decade ago, Bitcoin outflows, and a few others.
Eventually, Bitcoin price dropped to $53,904 but succeeded in recovering to $59,323, barely missing the $60K. It also failed in another attempt to break over the same, causing panic situation among investors and igniting extreme fear. The BTC price is currently $57,135.40 and has declined over 15% in the last 30 days.
More Drop On The Way?
The crypto market is divided on the future performance of Bitcoin. Many analysts have claimed bounce-backs and new gains, whereas a few have predicted a decline to as low as $30k. Crypto analyst Justin Bennet posted on X about another failure of BTC to pass the $60k recovery and the charts moving for a rising wedge pattern, an indication of continued downside.
$BTC rejected from $60k yet again.
And now we have a potential rising wedge forming, which could point to further downside.
We’ ll see if we get a full retest of channel resistance, but this 4h pattern is one to watch.#Bitcoin pic.twitter.com/hyjOW2t7UP
— Justin Bennett (@JustinBennettFX) July 11, 2024
More scarier is Robert Kiyosaki’s newest prediction. As per him, Bitcoin and other assets are going to the biggest crash. Interestingly, hours after his X post, the crypto market crashed and is still struggling with complete recovery.
But as the German government is almost out of its Bitcoin holding, the market might lift again as the selling is to get over. Next, the CPI data witnessed a decrease as the US Inflation for June was 3%, and the Core inflation was 3.3%, which might pressure the feds for rate cuts, which will eventually help with the Bitcoin price.
