Bitcoin and crypto analyst, MagicPoopCannon, has explored a possible scenario of Bitcoin has entered a bear market with the recent dip below $50k. According to Magic, Bitcoin is currently trading below the 50-day moving average which is a sign of weakness. He explains this scenario as follows
.I am neutral to bearish right now, but if BTC can rally back above the 50 day, and start making higher highs and lows again on the daily, I will be more bullish. Right now, I just see more and more weakness developing in a market that appears exhausted.
Magic also added that if Bitcoin enters a bear market, chances are, that it dips to as low as $12k or $15k.
If this is the beginning of the bear market, I think BTC could fall as low as 12,000-15,000. Notice the key word **if**. We don’t know for sure that the top is in, but if it is, I think 12-15K could be where we end up.
With respect to the recent sell-off due to Tesla announcing the end of Bitcoin as a car payment option, Magic jokingly stated that the move was probably because the electric car company realized BTC was close to a top
or had already topped. He explained the logic behind such a theory through the following statement.If someone pays them in BTC, and they hold it into a bear market, they would be holding rapidly depreciating assets, and losing massively on the profits from selling their cars.