Highs and lows have a season, just like anything else, and the crypto market is no exception. There will undoubtedly be bullish seasons, but there will also be bearish periods. At the time of writing, Bitcoin is fighting to recoup $50,000.
Bears are likely to stifle price moves in the short term, while Bitcoin is expected to double in price in the long run. This would imply that the bull market's second leg would begin in the next months, and that after this phase is over, the bear market will follow; but when and how?
When will Bitcoin reach its peak, and what will happen next?
Lark Davis, a Bitcoiner, has taken it upon himself to answer the question that many curious Bitcoin investors have been asking: when will the bulls ultimately pack up and give way to the bears? According to Davis, the bull market is far from done. He goes on to discuss how the Moving Average Multiplier might help determine how near the peak is to being reached.
Another crucial indication to keep an eye on is the net unrealized profit loss chart. All tops have traditionally been marked with a cross into Euphoria. While the indicator is a "shorter blow-off indicator," it signals the arrival of the bears. The investor and analyst added, "When this happens, it simply screams time to get out!" The Puell Multiple and the BTC Rainbow log charts are two further indicators that could signal to the market's direction.
Certainly, the market will experience another bad market cycle, but it may not be as severe as the one that occurred a few years ago. In other words, fresh bear cycles will have lower volatility than previous bear cycles.
“Yes, there will be another bear cycle. However, this does not imply a repeat of 2018. The cryptocurrency market has progressed. During the early years of technology stocks, we observed a similar pattern of enormous volatility. Market corrections were less severe over time.”
Keep in mind that institutional funds, as well as DeFi and NFTs, are driving the market. Davis' feelings towards cashing out immediately become stronger as a result of this. In compared to prior cycles, he believes that more money will stay in the market longer and finally form a high low, while bear markets would become shorter and shallower.
“However, keep in mind that the market can remain crazy for longer than you can stay solvent.
That said, don't forget about Metcalfe's law and the quick growth of the crypto market's user base.
The year 2020, in my opinion, will be the best financial opportunity of your life. The bear is for purchasing.” In conclusion, he advises.
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