How Long Will This Crypto Bear Market Last?

 

Are you also wondering when this crypto bear will last? A bear market is any stock in which the value reduces by more than 10- 20%. This decline should last a minimum of 2 months. This decline occurs in stock markets and cryptocurrency. The frequency of these occurrences varies but is usually between 2 to 4 years.

 

As of June 2022, both the stock markets and cryptocurrency have been suffering losses for several months. This started late in 2021 and has continued getting worse. The recession is expected to only get worse as 2022 draws to a close. But how long will this last? When can you expect these markets to start gaining? Here is the estimated time we expect the bear market to last based on historical data.

 

The current drip in cryptocurrency is far worse than people expected. With such a decline, many investors are questioning if there will be a bounce-back soon. Daily drops only create more panic for those with investments. Everyone wants to know when the bear market will come to an end. Here are some indicators that can help you!

Contents:

1. Increase in the number of people being laid off
2. Drastic price drops
3. Relative strength index (RSI)
4. Market value vs realized value
5. Moving average multiplier

Final thoughts

 

1. Increase in number of people being laid off

One of the first signs that crypto is losing value is a rise in layoffs. It is a way for companies to cut down on expenses and maximize profits, for example: 

• Drops in value in 2018, lead to the number of employees being reduced.
• Several crypto companies have reduced the number of employees from late 2021.
• The cuts in jobs have progressed well into the second quarter of 2022.

 

Layoffs will continue as we begin the third quarter. This only shows investors that the value will keep reducing.

 

Once companies start hiring more workers it means that crypto is picking up. Another way to determine if coins are gaining value is if companies start new projects that require more funds and manpower. As long as more funds are being poured in, it is a sign that the bear market may be over.

 

2. Drastic price drops

A sudden drop in prices over a short period is a bad sign. For example, if Bitcoin loses more than 200 within a week, it means that prices will keep plummeting. Once it climbs above that, then the outlook is better. From historical data, each time Bitcoin went above 200, its market value kept increasing.

 

Once you think the Market value has increased, assess the realized value. If it is above what it was before the decline then it is a good sign. Using this metric to check trends guides you on how much value a coin has gained.

 

3. Relative strength index (RSI)

The relative Strength Index is another metric traders can use to determine how long the bear market may last. In the past, the bear market was established once the value of Bitcoin dropped to less than a score of 16.

 

The RSI indicator also shows when a currency is likely to increase its value. A positive value should be above a score of 70. A rise in the relative Strength Index usually indicates that people are paying more attention to a market. This interest leads to higher demands and thus a decline in the bear market.

 

4. Market value vs realized value

The market value is the actual worth of cryptocurrency. The realized value is what it costs, which can be higher or lower than the market value. The market value to realized value Z score is used to estimate the actual cost of coins.

 

When graphs are charted comparing data from previous years, there is no upward trend. This could mean that the drop in the value of crypto is going to get worse. The drop in value will also most likely continue for the next few months.

 

5. Moving average multiplier

Another thing to look at is the moving average multiplier which is done over two years multiplied by 5. With this metric, the cryptocurrency was in the bear market once the 2-year moving average was lower.

 

Anything above the value of the moving average is considered a positive. It is a good time for people to make investments. The 2-year moving average multiplier can act as a good indicator as to when cryptocurrency will start picking up again.

 

Final thoughts

With the current trends, it doesn't seem like the crypto bear market is not going away anytime soon. Investors and shareholders have to keep this in mind. The value of cryptocurrency will only keep dropping as we approach 2023. As crypto is known for being volatile, a sudden change shouldn't come as a surprise.

 

So if you have invested in cryptocurrency, there is no need to panic. Things are expected to start improving sooner or later. Just be on the lookout. Even though most people think that the biggest drop is behind us, the worst is yet to come. But by the time 12 months elapse, things may start changing for the better.

You can get your Real-Time and Historical Cryptocurrency Data with Finage free Crypto Data API key.

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