Despite having a deeper peak-to-trough decline than the 2018 bear market, this crypto winter seems worse to many Bitcoin investors who experienced it. In terms of monthly momentum, the current negative trend is the greatest on record.
Cryptocurrencies are highly speculative and hence very volatile, with price swings significantly influenced by both extremes of investor sentiment (greed and fear). The present market is without question the most frightening since Bitcoin’s existence.
The previous monetary policy enabled the asset class to develop and expand, but the present approach has precipitated a rapid and considerable price decline. According to the LMACD, the outcome is very probably the worst bear market in Bitcoin’s history.
LMACD is the logarithmic form of the indicator Moving Average Convergence Divergence. The dashed zero line on the monthly LMACD for BTCUSD indicates that Bitcoin never even entered bear territory in 2018. During this bad market, the blue MACD line has reached its lowest position in history. The orange signal line has never dipped below the zero line, but it might very well occur in this cycle.
The bears have been in control of the cryptocurrency market for the greatest period of time ever, as shown by the Average Directional Index and all of the Direction Movement Indicators.
When the reading drops below 20, it usually means that the trend is over, thus the fact that this one began in 2015 may just be ending now. The return of a value above 20 after dropping below it could assist indicate the emergence of a fresh bullish trend.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.