Bitcoin’s Bear Market Continues, Caution Advised Amid Expected Rally Delays

Bitcoin has been on a downward trajectory since hitting its all-time high in March and continues to face a prolonged period of declines.

Despite widespread anticipation of a significant rally following the halving event, these expectations have been repeatedly deferred.

According to Markus Thielen, founder of 10X Research, Bitcoin may be entrenched in a bear market. In his latest analysis, Thielen, known for his accurate forecasts, has shifted his view from optimistic to more reserved based on recent technical analysis, on-chain data, and market sentiment.

Thielen noted, “Since March 2024, our perspective on Bitcoin has become more cautious. Current technical indicators and market fundamentals suggest that Bitcoin might be experiencing a bear market.”

While Thielen maintains a positive outlook for Bitcoin’s medium- and long-term potential, he advises caution in the short term. He observed that the market has seen several V-shaped recoveries following declines in early May, July, and August, but each downturn has been more severe with weaker subsequent recoveries.

He added, “The market structure and fundamentals are deteriorating, and September could be a pivotal month for Bitcoin.”