In its latest analysis published following the sharp declines in the cryptocurrency market, K33 stated that Bitcoin has fallen by approximately 40% from its all-time high.
This chart, reminiscent of the downward cycles of the past four years, has reignited concerns among investors that a new bear market may be on the horizon. However, the company argues that the current decline does not mirror the sharp crashes seen in 2018 and 2022.
K33 Research Director Vetle Lunde acknowledged that recent price movements resemble historically deep corrections, but stated that the current market structure is based on stronger foundations than in past cycles. According to Lunde, there is stronger institutional participation in the market today. Fund inflows into regulated investment products continue, and the interest rate environment appears more supportive compared to previous crisis periods. Furthermore, it is noted that a chain reaction collapse similar to the systemic delegitimization that deeply shook the market in 2022 is not currently present.
The analysis also notes that some bottoming signals are beginning to emerge. In particular, indicators of excessive pressure in spot trading volumes and derivatives markets suggest that the selling wave may be approaching its maturity phase. However, Lunde adds that these indicators do not yet signify a clear and confirmed bottom.
From a technical perspective, the approximately $74,000 level is considered a critical support point. A break below this level could see the price fall to $69,000, and even to the $58,000 region, which coincides with the 200-week moving average.
*This is not investment advice.
