After a promising start to October, bitcoin’s price has plunged hard in the following weeks, dropping by roughly 30% to dip below $90,000 yesterday.

Some analysts believe this marks the start of a bear market, so we decided to check whether two of the most popular AI-powered chatbots share this view.

Not Fully Confirmed

According to ChatGPT, strong signs are pointing in that direction, but it is too early to claim that BTC ($92,593.00)’s bull run is over. While the chatbot noted the double-digit price plunge over the past week, it said this does not guarantee a sustained bear market, as it can sometimes be just a temporary correction.

“Bear markets typically involve sustained declines over months or even years, along with broad investor capitulation – we may only be in the early phase,” it added.

ChatGPT also revealed other concerning factors, including weak institutional demand, outflows from spot BTC ETFs, and heightened investor panic. The Fear and Greed Index recently dropped to 10, which is an “Extreme Fear” zone and the lowest point since February this year.

BTC Fear and Greed, Source: alternative.me

This might sound disturbing, but it could also mark the light at the end of the tunnel. Historically, some of the best buying opportunities have emerged when the mass of investors capitulates. The state of “Extreme Fear” might indicate that the market has overreacted to the downside, creating a moment where the asset is temporarily cheaper than its long-term value suggests.

In moments like this, it is always helpful to quote the legendary investor Warren Buffett, who once said: “Be fearful when others are greedy and greedy when others are fearful.”

Not Crypto Winter Yet

Google’s Gemini noted that BTC’s price tumbled by almost 30%% since its all-time high of over $126,000 last month, which can be interpreted as the start of a bear market.

“A drop of 20% or more from a peak is the conventional definition of entering bear market territory.”

The chatbot also outlined several technical signals that support that thesis, including the price falling below the psychological level of $100,000 and the formation of a “death cross.” Those willing to explore this technical pattern in detail can take a look at our detailed article here.

In conclusion, Gemini argued that BTC has technically entered bear market territory based on the price collapse and the breakdown of key indicators, and it will be interesting to see whether this evolves into a prolonged crypto winter.

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