Bitcoin crash: Is it bears already?

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Written by

Dzoelx

Crypto guy|freelance writer|computer programmer

2 years ago

In community: Cryptocurrency and Blockchain(7b7f)

Topics: BTC, Crytocurrencies, Cryptocurrencies, Cryptocurrency, Investment, ...

If you’re big on altcoins, then your portfolio probably saw a double digit drop in the last 24hrs. Bitcoin dropped below $43,000 in a rather unexplained move. If Kazakhstan’s internet issue is to be held accountable, then it only goes on to explain why this space is described as ‘crazy’ by critics.

Bitcoin first, then others. The rest of the market followed bitcoin’s dip as the market shed over $200 billion from its total capitalization in the early hours of the day. Crypto twitter responded in its usual fashion as the greed index dropped to ‘extreme’ fear. You surely saw those tweets; “sell everything”! lol. Crypto twitter is certainly not my favourite place, but it surely makes the list. The shills dried up as the bears had a good day.

The bitcoin dip comes at a time when majority of speculators were expecting a brief upward trend. A trend they believed would usher in the bear season. The bears probably caught then off guard. But, is it bears already? There’s hardly a confident answer here. The bear season has been called several times. For the bears, ‘every dip spells the end’. Regardless, these drops end with quick recovery and price going up once again.

This one looks a bit different anyways. Bitcoin hasn’t really been up and running recently. While many altcoins have performed relatively well for the past few weeks, bitcoin looks like a car on breaks. Constant slow movements and little price drops as it keeps struggling to break through resistances. The journey back to $50,000 has been rather gloomy.

Despite some altcoins showing positive signs, their rally has constantly been dampened by bitcoin’s low momentum. Unarguably, there’s currently a high sell pressure on bitcoin. On the positive side, it appears to be holding on just well at these prices and the consolidation has been going on well. A worst-case scenario would be dipping below $40,000…an event I consider ‘unlikely’, at least in short term.

Is it bears already? Things are certainly not looking healthy, outwardly. We are currently leaning on a psychological support. Just like the moon boys would ask; ‘when news’? the next tangible news will go a long way to determining the direction of things but a proper bear season might still be far from us…if there will ever be one again.

Investors’ attitude is developing and even at extreme fears, investors have learnt to hold on to at least a tangible percentage of their portfolio and get back to their positions when recovery signs show. The probability of a full blown bear market is relatively low; nevertheless, periodic crashes are inevitable. But since old bitcoin wallets are coming to life again, you’ll certainly get a chance to lay your hands on some Satoshi-era bitcoin…lol.

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