Two Reasons Bitcoin’s Bear Market is Far From Over: Analysis

The cryptocurrency market is currently in an ongoing state of range-bound trading. This is particularly true for Bitcoin’s prices.

BTC appears to have been stuck in a range of $18,000 to $24,000 over the past months. Neither bulls nor bears were able to gain control. The result has been a prolonged chop, which is one of the most obvious signs that there is a bear market. This is especially true when the price trending downward.

CryptoQuant’s popular cryptocurrency research platform now gives more reasons why the Bitcoin bear markets are not over.

A significant shortage of demand

According to one CryptoQuant analyst, the lack of significant demand is one sign that Bitcoin’s price has not seen any catalysts to increase.

He points out that funding rates in futures markets have become negative since the BTC price fell from $22K to $19K, while it is consolidating at the $19K mark.

The metric’s values for the 2019-2021 period are much lower than the previous period. This indicates a huge lack of activity and demand in the futures markets, which can lead to a consolidation phase and range phase.

Source: TradingView

This metric should also be closely monitored, particularly in the short-term, as extreme negative values can “increase probability of a short squeeze and could cause an inverse in the cryptocurrency price.”

Bitcoin Sentiment: A Bearish Trend

Another analyst believes that the short-term sentiment of on-chain participants is still in a bearish pattern. This is evident in the fact that the short-term Spent Output Profit Ratio for the on-chain participants remains below one.

The resistance level was reached at the latest daily close. This is bearish for this week.

The analyst also notes that all those who bought after December 2020’s high are now in a losing position. It is now more difficult for SOPR, a long-term holder, to “turn back to positive trends anytime soon.”

The short-term SOPR provides more information than the aSOPR/SOPR (at least for the current market conditions), because it combines long-term and shorter-term data.

Source: CryptoQuant

Conclusion

The bear markets for Bitcoin are marked by periods where volatility thins and the prices drop.

However, these opportunities can also be available to those who want to invest in BTC. According to DBS Bank in Singapore, Bitcoin is still an untapped opportunity.

Daryl Ho, senior vice president and investment strategist at DBS, commented on the matter.

A central clearing party is required to verify that most of the ways you trade assets need to be verified. It is possible to trade assets that fiat money cannot because the fiat monetary system are still managed by central banks.

[…] I believe bitcoin is unique regardless of the price. You will see volatility if you only look at bitcoin’s price. This doesn’t tell you much about the benefits it brings.

Two Reasons Bitcoin’s Bear Market Is Far from Over: Analysis appeared first at CryptoPotato.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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