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Glassnode thinks the 2022 bear market will be the cruellest for BTC and all cryptocoins

According to the data, this year’s bearish market trend is the worst in the history of BTC and other coins. It records many BTC traders engaging in panic selling despite losses to ensure they don’t drown.

Volatility is an attribute that characterizes digital currencies. Unfortunately, this is a trend that can cause most novice investors to lose huge amounts of money on their crypto holdings. In most cases, many issues could trigger a bear market. Although some experienced players would use a bear trend to build their crypto portfolio, a sustained bear market is never profitable.

The trend for 2022 appears to be taking the worst turn in history. Glassnode, a blockchain analytics firm, has provided an unfavorable overview of the 2022 bear market. Additionally, the company noted many factors that contributed to the prevailing price drop in the crypto market.

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Diagram: GlassNode

The analytics firm reported on crypto market trends tagged A Bear of Historic Proportions. The report released on Saturday explained how Bitcoin’s price drop pointed to 2022 as the worst year for BTC.

Some of the listed factors behind the BTC bearish trend in 2022 are as follows:

  • Bitcoin’s systematic decline below the 200-day moving average (MA).
  • Cumulative Realized Losses.
  • Negative shifts from realized BTC price.

According to Glassnode records, BTC and ETH prices fell below their previous all-time highs. Such a slump has never happened in the history of cryptocurrency.

Glassnode thinks the 2022 bear market will be the cruellest for BTC and all cryptocoinsBitcoin shows some gains on the daily chart | Source: BTCUSD on TradingView

The Glassnode report showed the severity of the bear market in 2022 as BTC broke below the 200-day MA half-mark. Notably, the first and obvious red alert of a bear market is when BTC’s spot rate falls below the 200-day MA. Also, it could scale above the 200-week MA if the situation becomes critical.

BTC price falls below 0.5 Mayer Multiple, MM

Additionally, the analytics firm revealed the extreme conditions of the crypto bear market as the spot price falls below the realized price. With the outcome of the situation, many traders are selling their crypto tokens even if they are making losses.

In its illustration, Glassnode revealed that BTC fell below 0.5 MM (Mayer Multiple). This level makes it the first price decline of such magnitude since 2015. Usually, the MM is a measure of price changes when it is above or below the 200-day ma.

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Glassnode thinks the 2022 bear market will be the cruellest for BTC and all cryptocoins

The implication is to buy too much if above, or sell too much if below. Also, the company’s data shows a MM of 0.487 for the 2021-22 cycle versus the lowest recorded cycle of 0.511.

The company claimed that this is a historic event as it is unusual for spot prices to fall below the realized price. Finally, with an overview of all negative values ​​in the crypto market, the analysis company concluded that the market has entered a state of capitulation.

Featured image from Pexels, charts from TradingView.com and Glassnode

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