Bitcoin Bear Market Not Turning Bullish Anytime Soon: Report
October 17 2022 - 10:52AM
NEWSBTC
The current crypto winter has left bearish sentiments on Bitcoin
and other crypto assets in the market. As a result, several, if not
all, assets’ values are on their way to the bottom, leaving massive
losses for retail and institutional crypto investors. Experts have
released several speculating analyses regarding the ongoing bear
market, including the condition of Bitcoin and possible future
expectations. Bitcoin price remains at the $19k level, never
exceeding $24k in the past months. Following the ongoing price
trend, a prolonged decline is possible. Related Reading: TOP 5
Cryptos To Watch This Week – BNB, BTC, ETH, QNT, LEO Reason One:
Lack Of Demand And Activities In Bitcoin Futures Market Market
analytics believe the Bitcoin market may not end soon with the
current trend. A CryptoQuant analyst said the lack of demand for
Bitcoin is one of the signs that the asset prices are not
increasing soon. The analyst highlighted the rate of funding in the
BTC futures market. He explained that BTC funding rates became
negative when Bitcoin price fell from the $22k level and remained
at the $19k level. The CryptoQuant analyst further noted that the
metric’s values are notably lower in 2022 than in 2019-2020. It
indicates a low demand and activity in the futures market, which
causes a consolidation period and range phase. The analyst advised
close monitoring of the metric’s values, particularly in the
short-term, giving reasons. He said extreme negative values might
increase the possibility of a short-squeeze, which could cause a
price reversal for the cryptocurrency. Reason Two: Short Term
Sentiments Remain Bearish Another CryptoQuant analyst said the
on-chain participants’ short-term sentiments are still bearish. The
analyst explained the bearish sentiments exist because Spent Output
Profit Ratio (SOPR) for the short-term is below one (1). Related
Reading: Ethereum In Tight Range – Will Selling Pressure Push ETH
Below $1,250? The analyst said everyone who purchased Bitcoin
holdings after December 2020 BTC high is at a loss. For this
reason, it would be hard for long-term holder SOPR to turn positive
soon. In the current market, short-term SOPR is more informative
than SOPR/SOPR, which combines long-term and short-term data.
Although the Bitcoin bear market comes with periodic price
depreciation and reduced volatility, it presents an opportunity for
new BTC investors. Buying when the prices are low and holding till
the prices rise is one of the trading strategies in crypto. The DBS
Bank, a financial service provider in Singapore, said Bitcoin
remains an unmatched investment opportunity despite the bear
market. DBS senior vice president and investment strategist Daryl
Ho commented on the issue. Daryl said he believes Bitcoin to be
unique regardless of the price changes. He further said the central
clearing party trade verification makes crypto investments a better
opportunity than fiat investments. The DBS executive said the fiat
monetary system is governed by central banks, while crypto assets
trades get verified via a central-clearing party. He also cited
BTC’s 13-year-long record as a boost to investors’ confidence.
Meanwhile, Bitcoin still maintains its $19k level and is currently
trading at $19,530 with a low of $19,118. Featured image from
Pixabay and chart from TradingView.com
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