Glassnode Deems 2022 Bear Market As The Most Atrocious For BTC And All Cryptocoins
June 28 2022 - 10:30AM
NEWSBTC
According to the details, this year’s bearish market trend is the
worst in history for BTC and other coins. It records many BTC
traders engaging in panic sell-offs even with losses to ensure they
are not drowned. Volatility is one attribute that marks digital
currencies. Unfortunately, it’s a trend that could cause most
inexperienced investors to suffer huge losses of funds with their
crypto holdings. In most cases, many issues could trigger a bear
market. Though some experienced players would use a bear trend to
build up their crypto portfolio, a lingering bear market is never
profitable. The 2022 trend seems to be taking the worst historical
turn. Glassnode, a blockchain analysis company, has revealed an
unfavorable overview of the 2022 bear market. Furthermore, the firm
recorded many contributory factors for the prevailing crypto market
price drop. Related Reading | Bitcoin Coinbase Premium Gap
Approaches Zero, Selloff Ending? The analytic firm reported on
crypto market trends tagged A Bear of Historic Proportions. The
report, released on Saturday, explained how Bitcoin’s price fall
pointed to 2022 as the worst year for BTC. Some of the listed
factors for the BTC bearish trend in 2022 include the following:
Bitcoin’s methodic drop beneath the moving average (MA) of 200
days. Cumulative realized losses. Negative shifts from BTC realized
price. According to Glassnode records, BTC and ETH prices became
less than their previous all-time high cycles. Such a plunge has
never happened in the history of cryptocurrency. Glassnode report
indicated the severity of the bear market in 2022 as BTC went below
the 200-day MA half mark. Notably, the first and apparent red alert
of a bear market is the fall of BTC’s spot price beneath the
200-day MA. Also, it could go beyond the 200-week MA when the
situation becomes critical. BTC Price Falls Below 0.5 Mayer
Multiple, MM Additionally, the analytic firm displayed the extreme
conditions of the crypto bear market as the spot price goes beneath
the realized price. With the situation’s outturn, many traders are
selling off their crypto tokens even as they make losses. In its
illustration, Glassnode revealed that BTC plummeted below 0.5 MM
(Mayer Multiple). This level makes it the first price fall to such
an extent since 2015. Usually, the MM is a measure of price changes
when it’s above or below the 200-day MA. Related Reading
| Bitcoin Whale Presence On Derivatives Still High, More
Volatility Ahead? The implication means over-buying if it’s above
or overselling below. Also, the data from the company shows an MM
of 0.487 for the 2021-22 cycle against the lowest recorded cycle of
0.511. The firm maintained that this is a historic occurrence as
it’s uncommon for spot prices to go below the realized price.
Finally, with an overview of all the negative values in the crypto
market, the analytic firm concluded that the market has transited
to a capitulation state. Featured image from Pexels, charts from
TradingView.com and Glassnode
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