Bitcoin News: According to a popular market analyst, the failure of Bitcoin to reach new highs in 80 days means we may have entered a bear market.
An outspoken analyst, ‘Mr. Whale’ signals that a bear market is approaching in the current conditions.
The analyst confirmed in a tweet on July 6 that the bull market is over, with Bitcoin insufficient to make new highs in more than 80 days.
“Never in Bitcoin history have we corrected so long in a bull market and not hit new highs in the same year.”
One participant pointed out that during the 2013 bull run, there was a 7-month period during which BTC experienced a steep drop of around 70-80% from its previous high. That was before he made one final run to surpass $1,000 at the peak of that cycle.
Others have observed that this cycle is different from the previous ones due to all the additional factors at play.
Bitcoin has been consolidating for over six weeks now, which means a bigger move is imminent. When we zoomed out the graphics, ‘Mr. Whale’ conjecture may be correct.
Is miner migration good or bad?
There have been pressures on cryptocurrencies and bank-driven FUD in the last few cycles, but countries with more than 65% of the hash rate have never had a direct mining ban.
Many market watchers find this generally positive as it diversifies hash rates from the authoritarian regime in China. Mining operations could move into more crypto-friendly regions and use renewable energy, another positive aspect.
In its weekly report, Blockchain analytics provider Glassnode stated that the Bitcoin network is adjusting to the drop in hash rate as miners in China shut down their rigs.
“As volatility seeps into the Bitcoin price, its effectiveness in the mining industry has increased as the Bitcoin network adjusted to an incredible drop in hash rate during the Great Migration.”
Bitcoin hash rate continues to drop and is currently 76.7 EH/s according to Bitinfocharts. This means another 55% drop from ATH of 171 EH/s in mid-May.
Bitcoin price view
According to CoinGecko, BTC is trading at $34,750 and is up 1.4% in the last 24 hours. However, if the asset continues to make lower highs and lower lows, the overall trend will continue to be downward.
To break this, Bitcoin will need to pass $37,000 as resistance in the short term. If it fails to pass, a drop below the $32,000 support level could be seen.