CRYPTO NEWS

There are five indicators that traders can use to determine whether a crypto bear market is coming to an end.

crypto bear market

Although it is impossible to predict when a market will bottom, traders can use these five signs to gain an early indication when a crypto bear market is nearing its finish.

The bull market has ended, and the prospect of a protracted crypto winter is giving traders the shivers. Bitcoin’s (BTC) price has dropped to levels that even bears didn’t foresee, leaving some investors scratching their heads and asking how BTC will recover from this massive drop.

5 indicators to know when crypto market will end.

The current question on everyone’s mind is “when will the market bottom and how long will the bear market last?” Prices are dropping everyday, and the current question on everyone’s mind is “when will the market bottom and how long will the bear market last?”

While it’s impossible to tell when a bear market will end, looking at previous downtrends can help you figure out when it’s time to go.

Here are five markers that traders use to predict when a crypto winter is about to end.

The cryptocurrency market is starting to rebound.

Widespread layoffs across the crypto ecosystem as companies attempt to cut costs to survive the lean times ahead are one of the classic signals that a crypto winter has arrived.

Several key industry players, including technological businesses like ConsenSys and Bitmain, as well as crypto exchanges like Huobi and Coinfloor, announced layoffs during 2018 and 2019.

The recent flurry of layoff announcements, such as Coinbase’s 18 percent staff reduction and Gemini’s 10% cut, are troubling, and considering that the current bear market has only just begun, layoffs are certain to increase. As a result, it’s probably too early to use this indicator as evidence that the bear market is ending.

When companies start to hire again and new ventures open with significant investment announcements, it’s a solid sign that a crypto spring is on the way. These are signs that money is starting to flow back into the system, indicating that the worst of the bear market has passed.

Keep an eye on whether Bitcoin’s 200-week SMA acts as resistance or support in crypto bear market.

When the price falls below the 200-week simple moving average (SMA) and then climbs back above it, this has marked the conclusion of a negative period numerous times in Bitcoin’s history.

There are five indicators that traders can use to determine whether a crypto bear market is coming to an end. 4820b335 50c8 4540 b597 fcf38a5a7888 | BuyUcoin
BTC/USD 1-week chart. Source: Twitter

Previous instances where the price of BTC went below the 200-week SMA, the light blue line, and subsequently climbed back above the measure, as seen by purple arrows on the chart above, anticipated market uptrends.

A strong BTC price recovery above the realised price, which is the total purchase price of all Bitcoin and is depicted by the green line in the chart above, can also be used as additional evidence that the market trend is becoming positive.

When it comes to predicting bottoms, the RSI reigns supreme.

The relative strength index is another technical indicator that can reveal whether a bear market’s lows have been reached (RSI).

Specifically, during prior bear markets, the Bitcoin RSI fell below a score of 16 and into oversold territory around the time BTC made a low.

There are five indicators that traders can use to determine whether a crypto bear market is coming to an end. 1f544b4f 0a0c 4e4d b16a 9419322740ac | BuyUcoin
BTC/USDT 1-day chart. Source: TradingView

The confirmation that the low is in comes when the RSI climbs back above 70 into overbought territory, showing that an increase in demand has returned to the market, as shown in the two instances indicated with orange circles above.

The ratio of market value to realised value

The MVRV Z-score is a statistic designed to “identify times where Bitcoin is substantially over or undervalued relative to its ‘fair value.’”

There are five indicators that traders can use to determine whether a crypto bear market is coming to an end. 46de84ac 7471 45bd 9763 84cd5ea750ff | BuyUcoin
MVRV Z-score. Source: LookIntoBitcoin

The chart above shows the current market value of Bitcoin, the realised price, and the Z-score, which is a “standard deviation test that pulls out the extremes in the data between market value and realised value.”

Previous bear markets have coincided with a Z-score below 0.1, as shown on the chart, which is underlined by the green box at the bottom. It wasn’t until the gauge soared back over 0.1 that a new rise was verified.

This indicator predicts that Bitcoin may see additional decline in the immediate future, followed by a lengthy period of sideways price activity, based on previous behaviour.

Multiplier based on a two-year moving average

The 2-year moving average multiplier is a final statistic that can help Bitcoin investors figure out when the bear market is over. With Bitcoin’s price, this statistic tracks the 2-year moving average (MA) and a 5x multiplication of the 2-year moving average (MA).

There are five indicators that traders can use to determine whether a crypto bear market is coming to an end. 638804ee 288c 4607 ad4d a76fcf7b7b21 | BuyUcoin
Bitcoin Investor Tool: 2-Year MA Multiplier. Source: LookIntoBitcoin

The market entered bear market territory if the price of BTC went below the 2-year MA. An uptrend would begin whenever the price climbed back above the 2-year MA.

On the other hand, a price rise over the 2-year MA x5 line suggested a full-fledged bull market and an ideal moment to grab profits.

Traders can use this statistic to determine when it might be a good moment to accumulate, as indicated by the green shaded areas, or they can wait until BTC clears the 2-year as a signal that the bear market is finished.

It’s vital to note that no signal is perfect, and there’s always the potential of greater downside, no matter how a trader uses the indicators indicated above.

Source: Cointelegraph

Read more articles here…

The Meme Coins That Dominate The Top Ethereum Whale Holdings

With the bear market coming into full bloom, Ethereum whales are stacking up their holdings. However, there has been some deviation from the norm as new coins seem to have caught the fancy of these large investors. With meme coins continuing to make whales, the top 100 Ethereum whales remain bullish on them. The result::Listen

With the bear market coming into full bloom, Ethereum whales are stacking up their holdings. However, there has been some deviation from the norm as new coins seem to have caught the fancy of these large investors. With meme coins continuing to make whales, the top 100 Ethereum whales remain bullish on them. The result has been some of the largest holdings of these whales now coming in the form of meme coins.

Ethereum Whales Top 10

The top 10 holdings of the Ethereum whales are increasingly dominated by cryptocurrencies that would not be considered two years ago. The likes of Shiba Inu have been on the top of the list for the longest time and continue to maintain their position there. Given the success of SHIB in the market, it is no surprise that Ethereum whales are more bullish on meme coins, hence the increased support for dog-themed coins.

Related Reading | NFT Volume Down 93% Since January, Is This The Beginning Of The End?

So far, Shiba Inu remains the largest holding position by dollar value among these top whales, following behind ETH and USDC. The meme coin makes up 16.87% of the total holdings of the top 100 whales, coming in at a value of more than $546.9 million. 

The next in line is a new entrant. ShibDoge has been in the space for a while but through all of the meme coin craze has been one of the many that made up the noise. However, as the bear market has continued, ShibDoge has emerged as one of the unlikely winners of the winter.

Ethereum price chart from TradingView.com

ETH trending above $1,100 | Source: ETHUSD on TradingView.com

Ethereum whales have been increasing their holdings in the meme coin and at the time of this writing, ShibDoge makes up 11.62% of their holdings at a dollar value of $376,780,896. This makes it the fourth-largest holding behind Shiba Inu.

Meme Coins See Profitability Decline

The meme coins made a splash throughout 2021 and into 2022. They continue to curry favor from cryptocurrency investors and are still at the forefront of discussions. However, their profitability leaves a lot to be desired after the market crash that rocked the space back in June.

Related Reading | Head To Head: Bitcoin Miner Revenues Surpass Ethereum But There’s More

Currently, the profitability margin for coins like Shiba Inu is down tremendously. Data from IntoTheBlock shows that only 24% of all invested in SHIB are seeing profits. This means that the larger majority, 73%, are all holding bags of losses.

Dogecoin is also one of the meme coins that has seen profitability decline. Although the majority of holders are still in profit, it is only by a small margin given that 51% of all investors are in profit. As for ShibDoge, data from Coinmarketcap shows that the meme coin is down 94.59% from its all-time high back in May 2022. This shows that despite meme coins still being popular, investors are not seeing a large margin of profitability. 

Featured image from OKX, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

There are five indicators that traders can use to determine whether a crypto bear market is coming to an end.

Shopping cart
There are no products in the cart!
Continue shopping
0