It has been about 13 months since BTC hit its All-Time-High (ATH) in November 2021, and prices in the crypto market have been declining ever since. There has been no significant indicator that we may experience a reversal in the market trend anytime soon. Movement in Bitcoin’s price is a major indicator that determines the general prices of coins and tokens in the entire crypto space.
A “bear market” is a period of time where prices of assets experience a continuous decline. In this period, supply is significantly greater than demand, and the confidence of buyers is low. Bears control the bear market because they are usually responsible for the selling pressure that increases supply.
A “bear” is a pessimistic trader who believes that the prices in the market are going to fall, they short the market or sell their positions accordingly. Bears are the opposing rivals of bulls, and these two types of traders/ investors are the major determinants of supply and demand, which in turn determine general prices.
The end of a bear market is difficult to predict because nobody can safely predict the bottom price in an unpredictable market. There are lots of external factors that also determine price, such as global news, global events, economic growth, etc. All these factors come together to affect investors’ psychology. A bearish trader can turn bullish as his sentiment could be influenced by various factors.
It is no news that we are currently in a bear market, and as of this writing, this is the second-longest bear market ever in crypto. The unfortunate event with FTX creates room for a lot of possibilities, making the market more unpredictable than it usually is.
This bear market began in November 2021, after most large-cap coins experienced an ATH (All-Time-High). Since then, we have been experiencing large drops, small pumps, and consolidations. This bear market could eventually become the longest bear market as it has been 367 days since the highest high.
Photo: The 2021 bear market
The third-longest crypto bear market was the 2017 bear market, which began after BTC reached a high of 20,000. This bear market lasted 365 days, leaving investors’ portfolios under water as most coins and tokens did not recover after the bear market.
Photo: The 2017 bear market
The longest crypto bear market was the 2013 bear market, lasting an average of 415 days. This crypto bear market was the first major bear market in crypto history, taking place between 2013-2015.
Although the difference is not much when compared to the 2021 bear market, this means that the 2021 bear market can easily become the longest crypto bear market if it continues till January (which is very likely).
Nobody can affirmatively say when the 2021 bear market will come to an end, except someone who is from the future and can show proof. The news revolving around FTX worsens things because buyers are not sure how that may affect the crypto market.
This crypto winter has had an adverse effect on HODLer as the market shows no solid signs of recovering. No one can safely ascertain the future direction of the crypto market, as it has a history of changing fast and proving people wrong.
The concept of trading is to buy low and sell high, and with prices, this low, now might not be a bad time to buy (this is not a financial advice). Prices could go lower, but if you are looking to HODL long-term, you should be ready to ride the waves.
Always remember to do your own research before buying or selling, you are responsible for all your investment choices.
The 2021 bear market recently became the second-longest crypto bear market. Things are not looking too good considering the current sentiment globally.
Like every market, the crypto market has a market cycle, and we are currently in the bear market. This bearish momentum could come to an end at any time and could also continue for a long while.
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