The cryptocurrency market lately has been encountering violent fluctuations, enough to label the domain as having officially entered the bear market. That being said, Bitcoin’s falling price stance has led the investor to adopt a cautious stance, with markets engulfed in worries of the near-term scenario encapsulating the sector. Has crypto truly entered the bear market narrative?
Also Read: S&P Correction Looms: Raymond James Says Market Could Fall 10%
Bear Market Symptoms
It’s been a violent couple of weeks for the cryptocurrency domain in general. Bitcoin and Ethereum have both suffered major losses after trading to all-time highs of $120K and $4.5K. The latest crypto crash led the markets to fold abruptly, with BTC plummeting to trade at $90K at press time. Charles Hoskinson, founder of ADA, had earlier shared his opinion on this fall, adding how major macro developments are primarily responsible for this change.
“The crypto price drop is mainly driven by macroeconomic factors. Such as tariffs and economic instability, not because the technology is weak,” ADA founder shared.
Per a notable expert, Philakone, there are three sure-shot signs of a bear market that investors need to keep a keen eye on. If these three indicators flash red, then one can assume that the bear market scenes are truly hovering over the domain.
“3 major confirmations of a bear market.If all 3 align, it’s confirmed. 1) Weekly 50 EMA closes below. 2) Weekly Supertrend indicator closes below. 3) Monthly Kernel closes below. So far, all 3 are aligning, but we need more time.”
ChatGPT’s Verdict About The Bear Market
According to ChatGPT’s latest stats, the cryptocurrency domain is currently under a deep corrective phase. The AI portal shares how the market is yet to encounter the intense pangs of the bear market scenarios. The AI shared how the macroeconomic developments had led the crypto domain to undergo a brief correction. Furthermore, despite the recent drop, crypto is still integrated with broader financial markets, which again is a bullish signal.
Adding to this, the historical data suggest markets have often corrected by nearly 30% to 40% before strongly rebounding to their former glory.
It’s safe to assume that the markets have indeed been under a corrective phase and may recover their lost valuations soon. However, always remember that cryptocurrency markets are extremely volatile, so make investment decisions only after conducting thorough research and analysis
Also Read: Tom Lee: Bitcoin’s 10 Biggest Days of the Year Haven’t Even Begun Yet