Story highlights
- Bitcoin dips, but bull market remains strong.
- Bitcoin demand drops by 140K BTC.
- Profit-taking follows Bitcoin’s $109K all-time high.
Bitcoin is going through a short-term decline, but experts believe the overall bull market is still strong. Axel Adler Jr., a well-known crypto analyst, explains that this phase is only a temporary event. He says it is not a sign of a major market downturn.
The present demand loss for Bitcoin amounts to 140K BTC. These recent market losses stand as lower than observed during previous market dips. The previous market downturns caused Bitcoin demand to decrease by 268K BTC and another 437K BTC for the same event. The bigger drops created a more substantial market effect. The recent market downturn manifests as a momentary reaction that requires further inspection to qualify as a significant market crash.
The price decline of Bitcoin resulted mainly from investors pulling profits after Bitcoin surpassed its previous peak value at approximately $109K. The worldwide economic situation influences the market conditions. Due to tight monetary rules enforced by the U.S. Federal Reserve along with increased inflation levels markets experience pressure. The changing rate forecasts from investors lead to increased market pressure on Bitcoin together with other volatile assets.
Bitcoin Faces Short-Term Volatility After 140K BTC Withdrawal
Bitcoin price history has established numerous identifiable market patterns. The period between early 2021 started with Bitcoin reaching $60K before experiencing a sharp price drop. Bitcoin prices stabilized in the later part of 2021 before experiencing another decrease during 2022. Bitcoin experienced its most powerful growth pattern in 2023 and 2024, which resulted in crossing historic price milestones.
The market has observed multiple key declines of Bitcoin demand throughout the years. The Bitcoin market suffered a weakening effect when BTC demand decreased by 268K during the early months of 2023. In 2023, Bitcoin endured another devastating price decline when a massive 437K BTC demand collapse triggered a significant market drop. Recent Bitcoin trading data shows a 140K BTC withdrawal, which might trigger more short-term volatility in mid-2024.
The market shows signs of future Bitcoin recovery according to past indications, despite its current selling conditions. The market appears likely to generate a new upward movement based on previous patterns.
