Bitcoin Falls ~15% to Two-Month Low, Investors Question If a New Bear Market Has Begun
Bitcoin plunged about $14,700 (nearly 15%) from a recent peak around $98,000 to roughly $83,000, marking its lowest level in two months and reigniting debate over market direction. On-chain and technical indicators show weakening liquidity and contracting trading volumes, while altcoin underperformance has increased selling pressure. Analysts point to psychological support at $80,000 and a deeper historical support band near $74,000–$75,000. Crypto analyst Benjamin Cowen likens the move to prior cycle pullbacks and warns Bitcoin may have entered a bear phase similar to 2019’s slow decline; historical bear markets have averaged about a year. Downside scenarios cited include retractions to $50,000 or, in a severe sell-off, the $30,000 range. Traders should watch liquidity, volume, and the $80k/$74–75k levels for short-term direction; reduced liquidity and cautious buyer behavior increase volatility and downside risk.
Bearish
The article reports a near-15% decline in Bitcoin over a short period, weakening liquidity, contracting trading volumes, and cautious buyer behavior—classic signs that increase downside risk. Analysts explicitly compare the move to past cycle pullbacks and suggest Bitcoin may have entered a bear phase; historical bear markets lasted about a year with substantial retracements. Key technical levels ($80k psychological, $74–75k historical support) are under threat, and lower liquidity makes price support fragile. In the short term, expect elevated volatility, range expansion to the downside, and potential stop hunts as buyers stay on the sidelines. In the medium to long term, if liquidity and volume do not recover, the market could retest much lower supports (e.g., $50k or $30k scenarios cited), prolonging a bearish cycle. Conversely, a clear, sustained reclaim of $80k with rising volumes would be needed to shift sentiment back toward bullish. Given the evidence and analyst warnings, the expected market impact is bearish.