Bitcoin (BTC) plummets sharply in Q1 2024, beginning of bear market or signaling a big rebound?

Jakarta, Pintu News – Bitcoin (BTC) is back in the spotlight after recording its worst drop in eight years in the first quarter of 2024. The price of Bitcoin (BTC) briefly touched a peak of $97,689 before plunging to around $68,000, a drop of more than 22%.

This phenomenon has raised concerns among investors as to whether this is the beginning of a new bear market or an opportunity for a big rebound. However, a number of data and analyses suggest that this downturn could be just part of a normal market cycle, rather than a signal of a total collapse.

Bitcoin (BTC) often corrects in the first quarter, market cycle repeats itself

History shows that Bitcoin (BTC) often experiences sharp declines in the first quarter, but always manages to bounce back in the following period. In 2018, for example, Bitcoin (BTC) plummeted nearly 50% in Q1, but then entered a very strong recovery phase.

A similar pattern occurred in 2020, when the price of Bitcoin (BTC) plunged due to the COVID-19 pandemic, before finally surging to a record high of $69,000 in 2021. This cycle shows that sharp drops at the beginning of the year are often the foundation for big rallies in the future.

The current price drop is also considered to be part of the market reset process, not the beginning of a prolonged bear market. After the huge rally that pushed the price of Bitcoin (BTC) to an all-time high, a natural correction often occurs. Analysts believe that as long as the main market structure is maintained, there is a good chance of recovery. As such, investors are advised to stay calm and not panic in the face of short-term volatility.

Institutional Demand and Bitcoin (BTC) Halving Cycle Still Strong

Amid the price pressure, institutional demand for Bitcoin (BTC) continues to increase, especially through Exchange Traded Fund (ETF) products. The BlackRock Bitcoin ETF, for example, now manages more than 761,665.6 BTC worth about $52.5 billion. This surge in institutional interest is a major support for Bitcoin’s (BTC) long-term prospects. In addition, the presence of ETFs also makes it easier for large investors to enter the crypto market in a legal and structured manner.

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Bitcoin’s (BTC) halving cycle that occurs in April 2024 is also an important catalyst for the next potential rally. Based on historical patterns, after a halving there is usually an 18-month price increase phase. Many analysts predict the next major bull run could begin in early to mid-2026. With fundamentals remaining solid, Bitcoin (BTC) is considered to still have room to grow higher in the future.

Whale Activity and Bitcoin (BTC) Movement to Exchanges, Sell or Accumulation Signal?

The latest data from CryptoQuant shows an increase in whale activity on the Binance exchange. The Whale Inflow Ratio recorded a rise from 0.40 to 0.62 between February 2 and 15, signaling more Bitcoin (BTC) being moved to the exchange by large holders.

One of the largest whales, known as the “Hyperunit whale”, even reportedly moved nearly 10,000 BTC to Binance. Large moves like these are often interpreted as signals of potential sell-offs, especially amid market uncertainty.

However, overall, Bitcoin (BTC) reserves on exchanges continue to decline and are now at around 2.74 million BTC. This decline in reserves could be an indication that many investors are choosing to store Bitcoin (BTC) in the long term, rather than to sell in the near future. Thus, despite the selling pressure from whales, the general market structure still shows an accumulation trend. This reinforces the belief that the current price decline is more temporary.

Conclusion

The sharp drop in Bitcoin (BTC) price in the first quarter of 2024 is cause for concern, but historical data and market fundamentals show that this is not the end of the world.

Growing institutional demand, the ongoing halving cycle, as well as accumulation tendencies by large investors are the main underpinnings for a potential price recovery.

As long as the key support levels in the range of $64,000 to $65,000 hold, the chances of a rebound remain wide open. As such, the current volatility should be viewed as an opportunity, not a threat.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coinpedia. Bitcoin Price Records Worst Q1 in 8 Years, Market Reset? Accessed on February 18, 2026
• Featured Image: Generated by AI