Feb 02, · Bitcoin Is Now Officially In Its Longest Bear Market Ever Bitcoin has officially entered the longest stretch of declining prices in its year history. Jun 15, · Bitcoin's options market suggests Monday's price drop could be short-lived. However, the cryptocurrency remains vulnerable to a sell-off in stocks and increased miner hoarding is a sign the market. Dec 28, · Using the first definition, Bitcoin (BTCUSD) officially entered a bear market on December 21, , when it closed at 15, The decline was extremely fast, occurring only four days after reaching its all-time high (ATH) of 19,
Bitcoin bear marketWhy Bitcoin’s bear market will drive price to $3,
Part of the reason for this is that the investors who suffered major losses fail to return to the market once the trend reverses higher. Therefore a new group of enthusiastic Bitcoin investors needs to step in to take their place before a new bull market can begin. This can take years, depending on investor sentiment and economic conditions. It takes an average of days for Bitcoin to travel from a bear market low up to a new ATH.
More likely is that the next Bitcoin ATH will arrive somewhere between and 1, days after December 15, Start marking your calendars! However, if the recent lows of December 15, , fail to hold, then all bets are off.
A new set of calculations will need to be run for the bear market decline that began in December The MACD signal lines are still firmly in bearish mode. Image: TradingView. The bear market definition is certainly useful. However, it may not provide you with a complete array of in-context, tradable technical knowledge. Is that a no-touch trade setup, simply because it occurs within the textbook definition of a bear market?
No, of course not. It might even turn out to be a big winner, especially if the price is above its period SMA. If you see all three of those qualifiers on your Bitcoin chart, a strong bearish trend is in control.
You should not be looking to take long trades at all. However, you can choose to short rallies, short breakdowns or even choose to wait the market out. Patiently waiting for a bear market to end may be the safest strategy for newer traders and investors. However, the key week simple moving average recently acted as an important reversal point. Here are some clues to help you determine when this long bear market will be complete:. This article is still…. Donald Pendergast. Newsletter Sidebar.
This field is for validation purposes and should be left unchanged. December 20, Alex Moskov. In the past, the ratio has breached that level only two times. Further, on both occasions, prices bottomed out on the same day or the following day. The put-call volume ratio rose to a high of 1. As such, the latest reading of 1. The put-call skew measures the price of puts relative to that of calls. The decline, therefore, represents a recovery in demand for bullish call options.
Meanwhile, the three-and six-month skews are also hovering in the negative territory, implying stronger demand for call options expiring in the September and December expiry contracts. That said, options market positioning is known to change quickly and the cryptocurrency remains vulnerable to potential deeper sell-off in the equity markets. Miners, in particular, have accumulated inventory over the past seven days, selling less coins than they generated.
Miners often hoard coins when they feel the market lacks the strength to absorb further sales, as discussed earlier this month. Bitcoin's options market suggests Monday's price drop could be short-lived.
However, the cryptocurrency remains vulnerable to a sell-off in stocks and increased miner hoarding is a sign the market lacks strength. Subscribe to Blockchain Bites , our daily update with the latest stories. Put-call volume ratio.