Bitcoin Bear Market is Over
Bitcoin Bear Market is Over: The cryptocurrency market has made a small comeback, with the price of bitcoin recovering the $20,000 region. The long-term downward trend, however, is far from ending. Major cryptocurrencies are still between 80 and 90% off their record highs.
However, there are more and more factors supporting the idea that the retro of decline and accumulation in the cryptocurrency market will end. The macro Bitcoin lowest has already been hit, according to BeInCrypto’s three technical reasons, and a bullish trend reversal may be imminent.
Bitcoin Bear Market: Look at BTC Price Action
- Since achieving its all-time tall (ATH) of $69,000 on November 10, 2021, the bitcoin price has been declining. The price of Bitcoin has since dropped by 74.5%, reaching a low of $17,600 on June 18, 2022. There have been at least 350 days in the bear market for Bitcoin.
- We can see that the current cycle’s downturn has been less severe than the two bear markets that preceded it for Bitcoin. The price of bitcoin fell 86% in 2014 compared to its all-time high of $1177. Unlike in 2018, as compared to the previous ATH of $19,764, the price of BTC fell by 84%.
- Therefore, long-term support should be located in the $10,000 region (for an 85% loss from the ATH) if Bitcoin price were to reach a lower bottom, which would be analogous to previous declines.
- It would be a decrease of another 50% from the current valuation of around $20,000 and an apparent deepening of the cryptocurrency winter.
Fractals Without a Lower Low
- Numerous charts and technical arguments supporting an alternative scenario and the anticipated end of the Bitcoin bear market have recently surfaced.
- There was a breakdown from this pattern in all three instances, which in the near term resulted in a macro-bottom for the price of bitcoin. An accumulation (yellow area) followed, and after it was finished, an ascending trend began. The analyst emphasizes that during the accumulation period, no lower low was produced.
- The chart also contrasts the scaled-up BTC price act in 2015 and 2019 with the current Bitcoin price (red line). There was a past accumulation at the bottom of both bear markets for Bitcoin. Both 56% and 64% of the price movement today were correlated.
3 Technical Arguments
- A graph posted in a tweet by user @Washigorira adds still more justification. The Bollinger Bands Breakout Oscillator indicator and the Bitcoin monthly chart are used this time.
- This indicator tracks two separate breakout data series between the price and the Bollinger Bands’ extremes. The blue portions of the indicator signify bullish breakouts, while the red areas represent bearish breakouts.
- According to the analyst’s opinion, the red chart appears to be flattening. This has historically coincided with the end of a bear market for Bitcoin (red dashed lines). In the upcoming months, the red area might continue to rule. However, achieving the red breakout’s highest levels denotes a fast-approaching trend change.
Also Read: Can Crypto Be Hacked?