Bitcoin’s surge in prices since the beginning of the April month has got everyone excited with many predicting that the bull run has finally arrived after a prolonged winter. However, analysts suggest that the recent surge in prices is just another market movement and not the actual bull run. Analysts say that the recent surge would be followed by a market pullback and the prices of Bitcoin and other altcoins would see another bottom before rebounding to peak towards the end of the year.
In the last 24 hours, Bitcoin has gained 2% after a 10% sell-off earlier in the week. This sell-off is being considered by many optimist traders as the last shakeout before the impending bull run. However, cryptoanalysts think otherwise and believe there is more pain in for BTC than what many traders and investors are expecting.
How the Current Market Rally is Different From the Bull Run?
The crypto analyst says that the April price rally definitely brought the prices of Bitcoin and other altcoins past their respective key resistance levels. However, the price rally was followed by a massive sell-off, indicating the bulls might not have arrived just yet.
A drop to $4,300 from the current price point would see the price cut of 17%, which is not a big slump, given BTC gained well over 25% during the recent price rally. However, the area of concern is people thinking that the bulls have arrived and those who are not well versed with the crypto trade market trends might lose big during the market rebound.
Even if the markets do not fall back as per the predictions made by various analysts, the bull run has not arrived yet. It’s common for the trade market to create a bubble right before an impending bull run, just like the 2017 peak run which saw the prices of Bitcoin peak its highest at around $20k.
2018 bearish trends went on for well over 6 months which saw major cryptocurrencies lose almost 80% of their total market capitalization. Thus, the eagerness of the space has reached its saturation point for the next bull run to arrive. Before the April price rally, people and analysts have predicted the bull run to arrive towards the latter half of the year.
However, one must understand that recent price surge is just a cycle and not the indicator of the bull run. The market might very soon see a rebound and another bottom before taking charge.