Bitcoin Bounces Back: Is a New Bull Run Looming Amid “Extreme Fear” in the Market?
Mustafa Mulla6 Aug 20242 min read
After a major drop in the crypto market on Monday, August 5, things are starting to look up for Bitcoin. Its price has climbed above $55,589, which is a 12.2% increase from its lowest point the day before. This bounce is largely due to the US futures market showing signs of recovery, giving investors renewed hope.
Here’s what you need to know.
Bull Run Incoming?
Veteran trader Peter Brandt is also feeling optimistic about Bitcoin. He compares the recent drop in Bitcoin’s price to the one after the 2016 halving, which was followed by a major bull run in 2017. This comparison is important because the 2015-2017 cycle ended with Bitcoin hitting all-time highs.
Brandt’s observation suggests that, despite recent declines, Bitcoin might be on a similar path to future gains.
Historical Patterns & What They Mean
Brandt noted that in 2016, Bitcoin’s price fell from $650 to $474—about a 27% drop after the halving—before it surged to $20,000 by December 2017.
Today, Bitcoin has dropped 26% from its post-halving high of $64,962, bringing the price down to around $49,050 from a peak of $70,000 in late July. However, Bitcoin has shown resilience, rebounding to $56,000 in early trading on August 6.
Bitcoin In “Extreme Fear” State
The BTC price chart showed gains of 4.82% over the past day, reaching $55,848.13. The 24-hour low and high were recorded at $49,121.24 and $56,271.37, respectively.
Meanwhile, the Crypto Fear and Greed Index has entered the “Extreme Fear” zone for the first time in two years, coinciding with outflows of $168.4 million from U.S. spot Bitcoin exchange-traded funds.
On August 5, the index, which gauges market sentiment for Bitcoin and the broader cryptocurrency market, dropped to a score of 17 out of 100, the lowest since July 12, 2022.
The future of Bitcoin is uncertain. What’s your investment strategy?
