Is The Bear Market Ready To Hibernate Yet? | Daily News 17/6/22
Crypto’s brief relief rally got overtaken by the bears letting the market know not to get too excited just yet! After Thursday’s bounce back redeeming what is lost due to the announcement of higher interest rates by the Fed, general investors' worries about the incoming potential recession have increased once again.
Are we stuck in a new range and consolidating? Or are we going to break lower? We will look into it below 🤓, but one thing’s for sure; it's never to be underestimated! Every bear market in history has always proved one thing…it becomes a long distant memory when a new bull cycle hits! So let's get started 👇
Bitcoin recently went down to just above $20,300 which is about 10% in the last 24-hours, giving the bears that clawing power 🐾 to try to break that $20k support and hit more liquidations. But, just how strong is this ‘support’ at $20k? Well pretty damn strong 🦾! You may have noticed how we have called it a strong ‘psychological’ support level and what we mean by this is because of two main reasons:
- Because it was the previous market cycle’s all-time high (ATH)
- Because it is a nice round number which novice traders mainly use to place orders, stop losses, etc. as it's easily accessible!
Although a quick run below the $20k level could very well happen (otherwise known as a stop loss run 🛑), it is possible that it could be shortlived. Mainly because of the fact that historically, once Bitcoin sets a new ATH (in our current case, about $70k), it has never taken out the prior ATH. So dropping below $20k would technically be a first in Bitcoin’s history!
If Bitcoin can hold its support of $20k, then this could mainly indicate we have hit a bottom and could just go up from here. But unless you are a fortune teller with an advanced crystal ball 🔮, there is no way to tell for certain. With this in mind, many traders and investors are ‘buying at a discount’ right now and adding to their portfolios.
The BTC 4hr chart that investors all over the world are looking at - that $20k support level!
One last thing to mention regarding Bitcoin to keep you ‘bulls’ satisfied, is that we have seen the largest purchase since February with about 116,000 Bitcoins being bought by whales! This points us to the fact that we may very well see a pretty big relief rally soon as the addresses that bought big buys tend to buy in bulk after serious corrections!
Taken from IntoTheBlock’s Tweet yesterday
The platform IntoTheBlock quoted, “Yesterday we spotted the largest inflow since Feb with 116k $BTC, pointing to a potential bottom in price as these addresses tend to buy in size following significant correction”.
So are you feeling any more bullish readers? Or has this done little to where you stand?
As expected, altcoins are closely following suit to their founder Bitcoin, but of course, some are doing better (and worse) than others. Altcoins are mostly back in the red 🔴 for the most part with the ‘Queen of Crypto’ Ether still eyeing up that $1k support and Polkadot (DOT) and Solana (SOL) both being hit the hardest 👊 in the last 24 hours.
When it comes to bear markets, attention generally does tend to go towards Bitcoin, especially when it comes to seeing how the overall market will perform.
Bear markets are also a good time to consider accumulating positions in the alts, to be ready for when ‘Alt Season’ comes around. Alt Season is basically when alternative coins outperform bitcoin and have seen to be lucrative which is why many get that crypto-bug, looking for their next 100x coin.
Now, alt season is not exactly round the corner, as it happens when Bitcoin is enjoying a strong bull-run; however as this is a time where investors are accumulating or averaging down their positions, this could be a time *to look to add to your ‘alt-bag’ in the coins you believe will be a future hit!
DISCLAIMER - This is not financial advice, so please do your own research and be responsible when investing.
Also, as we mentioned in yesterday’s blog, if you are just sitting on your ‘bag’ of coins - you could consider making them work for you and accumulate more by staking?! 👉 Click here to stake with NAGAX where you can earn up to 20% interest in rewards safely with no fees!
🏦 The traditional markets are all pretty much in the same boat at the moment, with that ‘sinking’ feeling, but what is worth mentioning is that the Dollar Currency Index (DXY) dropped about 2% yesterday but is now bouncing back up. If we can continue to see the dollar weaken, it will really be at that point where Bitcoin, and thus the whole crypto market, can possibly start to see further strength!
- Bitcoin still holding strong after having its strong $20k support tested yesterday.
- Data shows huge amounts of Bitcoin being purchased by whales…opportunity or accumulation?
- Altcoins also not doing great but many are still holding and adding to their positions at these discounted prices.
- Can we finally see a break of $20k downside or see a big correction on the cards
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