Crypto market analysis Altcoins, Bitcoin, and the bear cycle

A variety of unexpected events have hit the cryptocurrency market throughout the year. Since the beginning of this year, the vast majority of the major cryptocurrencies have demonstrated unprecedented stability.

Their volatility rate has surpassed even traditional assets like gold and tech stocks. Even so, there are exceptions, such as Bitcoin, whose value is experiencing abrupt increases due to market speculation.

Not only is Bitcoin exhibiting signs of growth, but the altcoin market is also signaling the end of the bear market. Let’s delve deeply into the topic to gain a better understanding.

Altcoins in the late bear cycle 

Most of the altcoins hit their peak way back in mid-2021, making it over 29 months since they have experienced any major growth.

However, the mere mention of a Bitcoin ETF getting the SEC’s approval put the market on a pedestal recently. Similarly, the increasing turbulence on the geopolitical front has given Gold a major push.

More CEOs and governments are talking about cryptocurrencies, hinting at the market’s revival. The groundwork for the end of the altcoins bear cycle has been laid. All it needs is one major push to break the cycle after 2+ years.

Finding the bottom of a bear market is difficult and calls for a multifaceted approach, including technical analysis, fundamental analysis, and market indicators. A few tools or indicators are used for estimating the end of a bear market: the volatility index VIX, market conditions, economic indicators, etc. 

Bitcoin dominance 

The biggest factor accounting for the end of the altcoin bear cycle is Bitcoin. The crypto recently hit the 30k dollar mark due to market speculation.

After rumors surrounding a BTC ETF getting the SEC’s approval circulated, the crypto gained a 10% rise in mere hours. The development helped the entire crypto market get a better outlook. 

Bitcoin is currently trading at 28,321 dollars, with a 1.34% dip in the past 24 hours. To make a turnaround, the crypto has to break through its resistance points placed at 28,681 dollars, 29,127 dollars, and 29,384 dollars. 

Most of the long-term predictions for Bitcoin believe that the digital asset can make it through easily.

Altcoin bear risk and the Bitcoin bounce 

Despite the bounceback by Bitcoin, most altcoins are at risk in the bear cycle. Since they are unknown to many traders, they are likely to be sold off during market uncertainty. Bitcoin surged back near $28,500 on October 16 after being trapped in a trading range of $26,000 since late August.

Moreover, altcoins do not boast the same volatility appetite as Bitcoin. It makes them prone to huge price fluctuations. Above all, altcoins lack the market reliability Bitcoin has accumulated in the past decade.

Since they are in the early development stage, they are likely to face bugs, leading to their market decline. 

The end of the bear market 

For the bear market to end, popular cryptocurrencies, primarily Bitcoin and Ethereum must perform better.

The SEC considering several Bitcoin ETFs in the US, Blackrock CEO promoting Bitcoin, and an approaching BTC halving event are some of the factors that can trigger this turnaround.

Experts expect this turnaround to take place in the upcoming several months, primarily because of the increasing talks about BTC ETFs in the US.

Bitcoin: Anticipated peaks and key influencing factors

When it comes to the Bitcoin price forecast for 2024, the crypto is expected to hit a maximum of 60,315 dollars. On the other hand, its minimum achievable price is expected to be 51,211 dollars.

The biggest factors that can decide the fate of BTC are a Bitcoin ETF and 2024 halving. The crypto is expecting the halving event to take place in April 2024. On the other hand, no timeline is scheduled for the BTC ETF, but experts believe 2024 might see a company getting it approved. In the latter half of the year, the price increase could intensify, triggering a strong bull run that ends in a new all-time high by the end of the year.

What should investors do? 

It is recommended that prospective cryptocurrency investors do their homework before investing in altcoins. A diversified portfolio is recommended to reduce the potential for loss when investing in altcoins.

Moreover, it is crucial to look at the market with a long-term outlook. As seen already, the bear market can last for months, if not years. Therefore, patience is key to accruing stable profits in the crypto market.

In general, short-term investments bear less risk than long-term investments, which gives our money more time to grow and survive market downturns. Short-term and long-term investments are distinguished by their volatility, investment strategy, time horizon, and objectives.

In conclusion 

The recent turnaround of Bitcoin has inspired hope throughout the cryptocurrency market. Although the recovery was due to rumors, Bitcoin has shown traders that the market can still recover pretty quickly.

In the meantime, altcoins are suffering from the bear cycle, which might be coming to an end soon. The key factors in this development can be a BTC ETF or BTC halving scheduled for April 2024.

Nevertheless, before investing in any token, investors should conduct extensive research. In light of the cryptocurrency market’s volatility, comprehension and expertise are invaluable.