Glassnode considers the bear market of 2022 the worst for BTC and all cryptocurrencies

Glassnode considers the bear market of 2022 the worst for BTC and all cryptocurrencies

According to the details, this year’s bear market trend is the worst in history for BTC and other coins. It records many BTC traders who engage in panic sales even with losses to make sure they don’t drown.

Volatility is one attribute that characterizes digital currencies. Unfortunately, this is a trend that could cause most inexperienced investors to suffer huge losses of funds with their cryptocurrencies. In most cases, many issues can trigger a bear market. While some experienced players would use the bearish trend to build their crypto portfolio, the long-running bear market is never profitable.

The 2022 trend seems to be taking the worst historical turn. Glassnode, a block analysis company, found an unfavorable review of the bear market in 2022. Furthermore, the company noted many factors that contribute to the prevailing fall in prices in the crypto market.

Related Reading | Bitcoin Coinbase Premium Gap is approaching zero, stop selling?

Chart: GlassNode

The analytical firm reported on trends in the crypto market under the label Bear of historical proportions. The report, released on Saturday, explains how the fall in the price of Bitcoin indicated 2022 as the worst year for BTC.

Some of the factors listed for the BTC bearish trend in 2022 include the following:

  • Methodical decline of Bitcoin below the moving average (MA) of 200 days.
  • Cumulative realized losses.
  • Negative shifts from the realized price of BTC.

According to Glassnode recordsBTC and ETH prices have become lower than their previous highest cycles of all time. Such a decline has never happened in the history of cryptocurrency.

Glassnode considers the bear market of 2022 the worst for BTC and all cryptocurrencies
Bitcoin shows some gains on the daily chart Source: BTCUSD on TradingView

The Glassnode report pointed to the seriousness of the bear market in 2022 as BTC fell below the 200-day MA half. In particular, the first and obvious red warning to the bear market in the fall of the spot price of BTC below the 200-day MA. Also, it could go beyond 200-week MA when the situation becomes critical.

BTC price falls below 0.5 Mayer Multiple, MM

Additionally, the analytical firm showed extreme conditions in the crypto bear market because the spot price goes below the realized price. As the situation develops, many traders sell their crypto tokens even though they are making losses.

In his illustration, Glassnode found that BTC fell below 0.5 MM (Mayer Multiple). This level makes it the first price drop to such an extent since 2015. Usually the MM is a measure of price change when it is above or below the 200-day MA.

Related Reading | The presence of Bitcoin whales on derivatives is still high, is there still volatility?

Glassnode considers the bear market of 2022 the worst for BTC and all cryptocurrencies

Implication means overbought if it is above or resell below. Also, the company data shows an MM of 0.487 for the 2021-22 cycle compared to the lowest recorded cycle of 0.511.

The company claimed that this is a historical phenomenon because it is unusual for spot prices to go below the realized price. Finally, after reviewing all the negative values ​​in the crypto market, the analytical house concluded that the market has entered a state of capitulation.

Featured image from Pexels, charts from and Glassnode

Source link

Leave a Reply