Bitcoin went into an upward correction early on Tuesday, reaching $21,793 at the time of writing.
According to CoinMarketCap, over the past 24 hours BTC reached an intraday low of $21,190 and an intraday high of $22,795.
During the trading session, bitcoin rallied and jumped 7.5% to $22,306 in several hours, surpassing $22,000 for the first time since June 8.
However, despite the strong upward movement of the past two days, the bear market still continues for bitcoin, analysts note. The leading currency needs to break above $30,000 to end its downtrend.
Altcoin market
Ethereum, the leading competitor to BTC, has also advanced. At the time of writing, ETH gained 8.12% over the past day and rose to $1,527.
Last week, Ethereum climbed by 20%. ETH has jumped by 47% since the beginning of July, but remains below its all-time high of November 2021 by 71%.
At the end of last week, ETH surged upwards by 12% to $1,300 following an announcement by one of the project's developers that the transition to the proof-of-stake algorithm could occur as early as mid-September.
Out of the top 10 cryptocurrencies by market capitalization, most coins advanced yesterday, except for XRP and several stablecoins.
The best-performing cryptocurrencies were Avalanche (+12.07%), Dogecoin (+5.19%), and Binance Coin (+4.4%).
According to CoinGecko, the best performing coin out of the top 100 cryptocurrencies by market cap was Ethereum Classic, which jumped by 22.8%. The worst performing currency was Lido DAO, which tumbled by 15.4%.
Contrasting outlooks by crypto experts
According to CryptoQuant, a BTC sell-off by miners in the future could push bitcoin's price down significantly.
CryptoQuant's analysts noted that June's downward correction forced miners to dump their BTC holdings to minimize losses and lower the overall risks. The analysts stated that miners are now in a distribution phase and warned that growing pressure caused by the miners' capitulation could push the price well below the $20,000 mark in the near future.
Matthew Kimmell, digital asset analyst at CoinShares, also stated that troubles plaguing the crypto mining sector could cause a downturn for leading digital assets. As mining companies go bankrupt, the prices of mining rigs could also slump, putting extra pressure on crypto assets.
An analysis by Glassnode said the capitulation in the crypto market would likely continue amid ongoing severe financial stress. Rising pressure in the digital asset market would send bitcoin below $20,000.Some experts, such as Nassim Nicholas Taleb, former trader and author of "Black Swan", refused to give any predictions on when the bear market would end. "The journalistic expression 'crypto winter' is highly deceiving; it implies seasonality and, perhaps worse, a reversion to some trend. No, your winter may not be transitory, and what you call winter may degrade into a permanent & inescapable ice age fraught with extinctions," Taleb claimed.
An outlook by Grayscale Investments was more bullish on crypto and bitcoin and particular.
The investment company's analysts claimed the bear market could last for another 250 days, citing their estimates of trend cycles in the crypto market. Grayscale stated the downtrend was a regular market event that repeats every several years, and that it presented a good buying opportunity.
Investment advisor Edward Dowd said bitcoin could soon become an integral part of any investment portfolio, despite the repeated turmoil in the market. Dowd added that BTC could also surpass gold thanks to its decentralized nature and transparency.
Arthur Hayes, former CEO of BitMEX, claimed bitcoin would rise swiftly after touching the bottom. Hayes sees the Federal Reserve begin printing trillions of dollars in the future, which would then push BTC up.
