Crypto Analysts Confirm Bitcoin's Bear Market As The Price Falls Below $30,000

What Happened: Market-leading cryptocurrency Bitcoin BTC/USD dropped below $30,000 for the first time since January and was trading $29,975 at press time, losing 25.88% of its value over the past seven days.

In light of the continued sell pressure, Ki-Young Ju, CEO of on-chain analytics platform Crypto Quant said a Bitcoin bear market has now likely been confirmed.

Why It Matters: According to an on-chain indicator that measures Whale deposits to exchanges, the majority of this sell pressure comes from Bitcoin whales and not retail investors, which would arguably lead to much larger sell volumes.

However, Ki-Young Ju did note that a single indicator “can’t tell the future for sure,” and the crypto market is largely unpredictable.

“I'm just saying, this has been a pretty good indicator to determine a bull/bear market for me.”

In his view, if the Exchange Whale Ratio stays above 85%, then the market is likely to be bearish or fake bull.

“To be clear, I expect my $BTC bearish bias won't last long (maybe just a few weeks) because the market looks good in terms of supply/demand in the long term (e.g., Stablecoins ratio(USD) and SSR),” he added.

“So don't get me wrong, I'm not saying it's over.”

What Else: Another indicator that confirms an impending downside for Bitcoin’s price is the BTC Death Cross which took place “at least five weeks ahead of schedule,” according to crypto trader Rekt Capital.  

As he previously stated, this indicator has historically led to price drops in excess of 55%, which would mean a drop to a price level of $18,000.

Read also: A Technical Look At Bitcoin As Crypto Sells Off

Still, some analysts are optimistic about the outlook for Bitcoin. PlanB, who created the Stock-to-Flow (S2F) Bitcoin price model, estimates that even in the worst-case scenario, Bitcoin could reach $135,000 by December 2021.