When it comes to Bitcoin, market sentiment continues to fall. Ironically, there is one final stage that we have to go through before we can even start dreaming of leaving this bitcoin bear market & reaching new all time highs.
The complete loss or absence of hope. Despair – it’s real and is currently being allowed to fester within the crypto community. Thankfully, that is exactly what you want to see. When everyone is depressed it’s pretty safe to assume the bottom is near.
The previous correction lasted 669 days total. A 40% reduction is 267 days.
Market recoveries are complex. With many stages & facets which could very well be expanded beyond this list. Selected below you will find 4 charts from various independent sources. All trying to make a case; why we could be at the tail end of the Bitcoin bear market.
1.) Fastest Bitcoin Correction In a Bear Market To Date
Previous corrections saw Bitcoin consolidate precisely at the 78.6% fibonacci retracement level for exactly 273 days. Historically, the 78.6% retracement shows up in either young assets or the weakening of a trend in an old one.
- The correction currently taking place has taken 40% less time to crack the 61.8% fibonacci retracement level. 202 days as opposed to 334.
- The previous correction lasted 669 days total. A 40% reduction is 267 days.
We are roughly on day 202. Which leaves 65 days left until the bull market. (source)
2.) So Many People Are Still Trying to Short Bitcoin
The number of open “BTCUSDSHORTS” positions on Bitfinex is one of the most accurate ways of telling if the number Bitcoin margin shorts are getting a bit overextended. Eventually, all of these short positions will need to be closed (and/or liquidated) fuelling the next bull market.
When the overall general consensus becomes one of “prices will inevitably go lower”. You can expect the opposite to happen 99% of the time.
3.) An Inverse Head and Shoulders Pattern That Could Spark a Massive Bull Run
4.) Everyone “Knows” The Price is Going to Go Down
Understanding the various factors, and exactly what to watch for can leave you better prepared when examining the crypto markets. It will also allow you to stay above the mainstream and see financial opportunities before everyone else.
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