Let’s take the plunge into the depths of the bear market together! – The onset of the crypto winter has arrived. Even more difficult than many of us could have anticipated it to be. The market is in the red, and investors are getting pessimistic. In a nutshell, morale is at an all-time low, much like the number of winning Bitcoin addresses, which is also down.
What are we going to do with bearmabull?
The bears were able to completely wipe out the profits made by the preceding bull run. Almost to the level of the course’s value before it had its meteoric climb. The launch pad for the bull market of 2021 was begun in October 2020, at the crossing of 12,000 dollars, when the price of bitcoin reached that level. After another two years, we are getting dangerously close to 15,000 bucks. A level that is comparable to the previous one, which causes us to drop even farther below the ATH (All Time High) that was reached during the bull run in 2017. An unprecedented circumstance. A few months ago, we also crossed the 200-week moving average, which was something the Bitcoin price had stubbornly refused to do up until that point.
Investors have to rely on their sight to get through this dismal fog. And after a slump that has now lasted for more than a year, people are growing bored of a bear market that shows no sign of wanting to end.
The cryptocurrency market has reached its point of most pessimism.
When we consider the dates that are stored on the blockchain, we discover that even long-term bitcoin holders are, for the most part, in a state of latent loss. A little more than 51 percent of Bitcoin addresses, or 24.6 million out of 47.9 million, have a buying average that is higher than the current price. At the time of this writing, the price of one bitcoin was approximately $16,000.
Since its inception 13 years ago, a degree of loss that occurs so infrequently in generally bullish markets that it is almost unheard of. To find levels of loss compared to this, we will need to travel back in time to the most chaotic hours of the COVID-19 crack in March 2020, which occurred during the widespread pre-lockdown hysteria. It is abundantly evident that the macroeconomic uncertainty, which was further exacerbated by the failure of FTX, prevailed over the cryptocurrency market.
Investors in Bitcoin Continue to Suffocate in Losses
2015 marked the year that the bear market finally reached its bottom, at which point roughly 62% of Bitcoin addresses were in the red. During the bear market that started after the bull run in 2017, on the other hand, this indicator bottomed out at 55% during the lowest point in December 2018. After this horrific month of November 2022, we will have reached 52%, a value that is extremely near to the records set in the past. If we have not yet reached the bottom, we may be certain that we are getting closer to that point.
We are not in the least bit immune to a further catastrophe that would send the cryptocurrency market into a no man’s land in the annals of history. But once all of the negative reports have been covered, won’t there be nothing but the positive ones left to report?
On the horizon, hopeful signs are beginning to appear, such as a deceleration in the rate hike and a decline in the value of the dollar… Although it is still a ways off, the halving of Bitcoin’s reward is expected to take place around April 2024. In a nutshell, it is necessary to strengthen one’s convictions during times like these, as well as to keep one’s hope alive and to take one’s misfortune with patience. Still holding out hope that there will eventually be a glimmer of hope at the end of this dark tunnel.
