Has the Bitcoin ‘bear market’ really started now?

The largest digital currency briefly dropped below $90,000 on Tuesday, causing panic among Bitcoin investors. Currently, the crypto market is facing concerns about the overvaluation of several major tech stocks and their investments in AI data centers. If these investments don’t prove profitable soon, the AI-bubble could quickly burst, with dire consequences for the crypto market.

Wall Street

If you use the classic Wall Street formula, Bitcoin is already in a bear market, as we’ve lost more than 20% since the $126,000 peak. However, those rules don’t always apply to crypto, which is quite volatile.

Nevertheless, the unrest for Bitcoin is growing. Technical analysis shows that any bad news right now (for example, Nvidia’s earnings which are scheduled for release after hours tonight) could trigger a further drop to a support zone. According to the analyst consensus, this zone is somewhere $70,000, which would be the low point of the year.

Buy the dip

On the other hand, there’s also a growing body of analyst who claim that the current levels of Bitcoin and Ethereum are a “buy the dip” moment waiting to happen in the short term. This can’t be ruled out given the significant declines in the past week. Just be careful not to catch a falling knife.