For several months now, investors have argued that the market has entered a bear market. A bear market is when a long price declines in a market. This is typically a situation where security prices fall 20% or more from recent highs amid widespread optimism and negative investor sentiment. Now, some consider that the bull market or bull market is coming soon. This article is not investment advice.
Overall favorable context
Bitcoin (BTC) and Ethereum (ETH) showing positive signs in the market. If the start of 2022 meant a bullish rally that would send BTC above its all-time high of $64,000, then the dream turned into a nightmare. In fact, the market has fallen to new lows, until it entered a bear market. These two digital assets serve as a benchmark for many crypto holders to determine whether the market is bullish or still bearish. However, this analysis could be wrong. Altcoins could have a strong recovery, regardless of the signs of large caps.
Amid the market decline, BTC showed positive signs this week. The price of BTC, currently at $20,602, rose 3% on Saturday and remained stable throughout the day. The popular asset’s daily trading volume has also recovered on most exchanges since the middle of last month. Bitcoin price has been struggling for the past month, but now it looks like it is able to break new resistance levels. In the last week, there has been an increase of 13%.
The deal after The Merge
Investors believed that ETH would see a huge price increase after the merger. It is clear that the opposite happened, so that today the price of the asset is found at $1,456. In conclusion, the maxim “buy the rumor, sell the news” seems to be true here. While tech giants like Google are already backing ETH, the months ahead are as exciting as they are uncertain.
While it is likely that the bull market will happen again, it is more difficult to determine when. Since all digital assets have taken significant hits this year, nothing is certain. The merger is seen as a turning point for cryptocurrencies. For bitcoin, this is not the first time a breakout has been attempted. Investors are now wary of it, and dub these moves as a “bull trap”.
Get a summary of the news in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss any of the essential Cointribune!
As for the angelism of the intermediaries of the current monetary system, I oppose DeFi, digital assets and the metaverse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.
