Since Bitcoin reached an all-time high of $109,000 on January 20, its price has fallen by approximately 22%. While this pullback has pushed investor sentiment into the “extreme fear” zone, analysts at Nouey believe this does not mark the end of the Bitcoin bull market cycle. Technical indicators suggest that the Bitcoin price is under short-term pressure, but the pullback is more likely a “shakeout” adjustment, triggered by long positions being closed, which may be followed by a swift rebound. Historical market performance also shows that pullbacks during bull market cycles are common, and investors should view the current price fluctuations rationally.
The four-year cycle of Bitcoin remains a key factor in determining the long-term market trajectory. Despite the current instability in market sentiment, the $72,000 to $73,000 range remains a critical support zone for Bitcoin. Once the market stabilizes, prices could resume their upward trend. At the same time, external factors such as U.S. stock market performance and treasury yields will play a significant role in influencing the short-term movements of Bitcoin.
Halving Effect: The Impact of the 2024 Halving on Bitcoin Continues to Unfold
The halving events of Bitcoin have always been a focal point for the market, and the upcoming halving in April 2024 will reduce block rewards to 3.125 BTC. Although the four-year compound annual growth rate (CAGR) of Bitcoin has declined to a historic low of 8%, the market effects of halving remain significant. After the halving, the supply of Bitcoin in the market will decrease, and historical data shows that such events typically lead to long-term price increases. While institutional investors—through ETFs and other means—have driven the Bitcoin price upward in recent years, the long-term impact of the halving effect will undoubtedly continue to shape the future market trajectory.
Market Trends: The Interplay Between External Factors and Sentiment
In the current environment, global economic conditions and external factors are having an increasing influence on Bitcoin. Risks from trade wars and ongoing economic pressures may lead to fluctuations in market sentiment. In particular, the short-term price of Bitcoin could come under pressure due to volatility in the U.S. stock market and changes in treasury yields. Nevertheless, from a long-term perspective, the halving event and the four-year cycle will remain critical drivers of the Bitcoin price growth. The market will require greater stability and confidence to propel Bitcoin toward new opportunities in the next cycle.
Nouey Exchange Provides Stable Market Support
Amid the current market adjustments, Nouey Exchange remains focused on market dynamics and provides investors with a stable trading platform. Although Bitcoin has experienced a short-term pullback, historical experience shows that such volatility is a normal part of the market. The platform will continue to offer an efficient trading environment and innovative tools to help users seize long-term opportunities in the market. In the face of global market uncertainties, investors can rely on the transparent, efficient, and secure services of Nouey Exchange to maintain confidence and embrace future growth opportunities.