Bulls or Bears: Analysts Weigh in on Who’s Going to Dominate the Market

Bull and bear silhouettes and bitcoin symbol.Modern finance concept.Vector illustration.
  • Santiment suggests the ‘crypto crowd’ sees an end to the bull market after a 16% Bitcoin correction.
  • CryptoQuant attributes the sell-off to profit-taking, geopolitical tensions, and a wait-and-see approach pre-halving.
  • VirtualBacon views the dip as a buy opportunity for Ethereum and Solana, contrary to the bearish sentiment.

Market intelligence platform Santiment said in a post to its 181k followers that the “crypto crowd” was under the impression the bull market has run its due course. This comes after Bitcoin has reached new all-time highs in mid-March – but has since seen a 16% correction.

According to the crypto crowd, the bull market has essentially come to an end after Bitcoin’s -16% market value drop since the all-time high of $73.6K hit back on March 14th.


Analysis: Bitcoin’s Direction Bullish or Bearish as the Halving Approaches?

According to the analysts, the term bear market is also being flung around increasingly. But, they continued, that may actually be a good thing:

Historically, prices move the opposite direction of mass traders’ expectations. The quick drop off of FOMO combined with a notable rise in FUD is a promising combination that cryptocurrency may see a recovery either right before the halving, or shortly after.


Traders Take Profit Ahead of Halving, CryptoQuant Says

And there may be reasons why we have seen a sell-off. Analysts at CryptoQuant said in a report that recent price sell-offs in the perpetual futures market have been driven by several factors: profit-taking amidst Israel-Iran tensions, short-term holders cashing out for substantial gains, and reduced demand from large holders and ETFs.

Bitcoin price and open interest, source: CryptoQuant

This correction serves to reset traders’ unrealised profits and is often indicative of a bottom in bull markets. Prices now hover closer to the US$58k (AU$90k) support level, reinforcing its significance. 

Investors seem to be reducing their Bitcoin exposure ahead of the upcoming halving, possibly waiting for Middle East tensions to ease before re-entering the market, the report said.

CT-Analyst Weighs in on Price Trajectory

While well-known commentator Arthur Hayes – citing these current difficult times in the market – recently said he is not making any trades any time soon, not everyone is agreeing with that sentiment. Popular analyst and trader VirtualBacon said he is “buying millions in Bitcoin and Altcoins”.

According to him, this is a great time to accumulate, suggesting that based on past events geopolitical tension has offered investors excellent entry points. Unlike others, the trader believes Ethereum and Solana are in a good position for buying.

He explained that Ethereum is dipping to its 200-day EMA, offering a great buying opportunity. Solana, often overshadowed, now hits a crucial support level, suggesting the possibility of high returns. Historical trends support buying between the 100-day and 200-day EMAs during bull runs for strong returns. The risk/reward is considered very favourable, he concluded.

Related: Analyst Miles Deutscher Reveals Strategies to Survive Choppy Markets, Says Buy These Alts

Of course, as always, please do your own research, crypto is risky. As is evident, even the analysts don’t always see eye to eye when it comes to gauging the market. 

One way to get better results in any market condition is education: You can read our comprehensive tips on how to analyse crypto before buying in our guide over here.

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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