Bitcoin Prices Hold Steady Amid Bear Market Predictions and Economic Uncertainty

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Bitcoin, the leading digital currency, is currently giving ground at spot rates, as it swerves from its once record-breaking highs. Observing the coin’s daily chart performance, it’s evident that economic bears are prowling, lured out by the overall negative drift in the market. As of now, Bitcoin finds itself in a 10% dip from its high in March 2024, yet resiliently steady.

Peering into these trends, one prominent analyst proposes that the current path of events will likely persist in the upcoming days. Amid widespread anticipations that Bitcoin prices would employ a brisk rebound to not only slash its prior records but sprint towards a whopping $100,000 following the essential Halving event on April 20, the bears have, quite unexpectedly, landed the final blow.

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The infamous cryptocurrency is currently ensnared within a vast horizontal terrain, statically peaked at around $74,000 and bottoming out at approximately $56,500, a figure registered in May. Technically, the favorable push upwards recorded in the first quarter of 2024 has maintained the overall uptrend, despite broad market fluctuations.

Yet, even as traders anticipate further gains in the pipeline, the aforementioned analyst maintains prices are likely to plateau out in the consequent few trading weeks. Inspecting the historical data from 2020 when the Bitcoin network reward system was halved, the coin portrayed a persistent horizontal motion for roughly 150 days, with prices incessantly bouncing between $9,000 and $11,000. Presently, the ongoing stagnation has been similarly mirroring this pattern for about 90 days, making it half-way through its previous cycle.

According to these projections, prices could likely continue in their sluggish sideways drift for the next two months, and perhaps even stumble below critical support thresholds. As of the moment, Bitcoin ‘bear’ bars are huddled around the lower BB, signalling a forceful selling momentum.

On the other hand, the gap between the middle and lower BB draws attention to escalating volatility, swinging the pendulum to the sellers’ side. Other key factors, such as broad economic indicators and on-chain data, also signal potential causes for concern. One keen observer noted that various crypto hedge funds have curtailed their BTC engagement, demonstrating a dwindling confidence in the digital coin.

Over the past 20 trading days, the crypto market exposure to Bitcoin has reportedly been slashed to 0.37, its lowest position since October 2020. However, as hedge funds pull back, the inflow to over-the-counter (OTC) desks has reportedly surged since Halving. This hints that key miners or established institutions are offloading their BTC away from traditional exchanges. Recent on-chain data reveals that OTC balances have swelled by a significant 62,000 BTC, marking one of the largest 30-day shifts ever recorded since 2017.