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CURRENT BITCOIN BEAR CYCLE IS WORST AMONG THE PREVIOUS

CURRENT BITCOIN BEAR CYCLE IS WORST AMONG THE PREVIOUS

There are a few factors that have contributed to making the current crypto bear market worse than ever recorded as many Bitcoin (BTC) traders are underwater and continue to trade at a loss, according to Glassnode.


Saturday's report by blockchain analyst Glassnode entitled "A Bear of Historic Proportions" describes how Bitcoin's current immersion under the 200-day moving average (MA), the negative deviation from the gains and losses has been compounded by making 2022 worse. of Bitcoin:


"In the meantime, Bitcoin and Ethereum have both traded under their previous ATH cycle for the first time in history."

The first and most obvious indicator of the bear market is that the local price of Bitcoin (BTC) falls below the 200-day MA and in the extreme case, the 200-week MA. To highlight how far the current price levels have not emerged, Glassnode has shown that during the 2022 bear market, Bitcoin has fallen below the 200-day MA level.



Glassnode also showed that a drop of less than 0.5 Mayer Multiple (MM) is the most unusual event since 2015. MM features in price changes above and below the 200-day MA to indicate the best-selling or best-selling conditions. The report states, "Only 84 of the 4160 trading days (2%) recorded a close MM average of less than 0.5:"


"For the first time in history, the 2021-22 cycle recorded a lower MM count (0.487) than the previous round (0.511)."

Ensuring the stability of the current market conditions is the price of property that falls below the acquired price, forcing traders to continue to sell their coins at a loss. Glassnode noted that such a cascade effect is "common in bear markets and market value."


Glassnode said the conditions in which prices traded below the acquired price were uncommon, noting that this was only the third such event in the last six years and the fifth since the launch of Bitcoin in 2009:


"Spot prices are currently trading at a 11.3% discount on the value acquired, indicating that market participants are now underwater in their place."

The unavailability of this event is illustrated by the Glassnode model which shows that only 13.9% of all Bitcoin trading days have seen prices fall below the acquired prices.



These situations are made worse by investors closing their losses in the crypto-largest with a market cap. When Bitcoin dropped below the $ 20,000 mark in June 2022, Glassnode wrote that BTC investors are trapped in “the biggest daily losses of USD found in history:”


"Investors are locked in a joint loss of $ 4.234B in one day, an increase of 22.5% compared to the previous record of $ 3.457B suspended in mid-2021."

Focusing on all the negative metrics, Glassnode checks that the market is in the middle of a rating event. Cointelegraph confirmed the survey on Friday by revealing that miners had begun selling their stacks, which is another indication that capitulation extensions have taken place. Such events often mean a lower price range for the cycle.

Source: cointelegraph




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