The broader crypto market is currently navigating a phase of uncertainty, with concerns mounting over the possibility of a new bear market. A recent analysis by Barchart analyst Rob Isbitts highlights three significant signals suggesting that a deeper retreat in crypto prices may be on the horizon.
A similar pattern was evident in the early months of this year, where fluctuations were mirrored in the market as increased outflows in these investment vehicles began to rise.
However, for cryptocurrencies that are further removed from the Bitcoin core, such as Solana (SOL), additional risks emerge. In these cases, not only does correlation impact prices, but a higher “beta” can lead to even steeper declines, reflecting increased volatility.
The report also discusses a shift in the perception of gold, which has traditionally been viewed as an “anti-US dollar asset.” The expert asserts that as global central banks increase their gold reserves, the dynamics of the market may be changing.
A longer-term analysis of Bitcoin by Isbitts illustrates its inherent volatility, yet it has consistently managed to achieve higher highs over time. While this trend may continue, the current market conditions suggest that any future rallies are likely to start from lower price levels.
As of this writing, however, Bitcoin, the market’s leading crypto, has regained the $112,900 mark, rising 3% in the last hour of Tuesday morning’s trading session.
Featured image from DALL-E, chart from TradingView.com
