There are new trends in the crypto market. With the recent crash, Bitcoin has seen some first-of-its-kind movements. Their impact is far-reaching as the future dynamics of digital resources are being recorded. This shows that the recent bear market is different from each of its predecessors.
Bitcoin falls under the high cycle
One trend that Bitcoin has always followed is that its value has never fallen below the top of its previous cycle. For all previous bear markets, this trend has become and continues to be a beacon for beer markets. This is why many analysts used this trend to push Bitcoin downwards.
Now, though, for the first time, the price of Bitcoin has fallen below the top of its previous cycle. This happened when the price of digital assets broke below $ 20,000 and hit a low of $ 17,600. It has since recovered from this point but it has already set a new precedent, which is that the price of cryptocurrency is not always above the top of its previous cycle.
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The effects of such movements are varied but one obvious fact is that bitcoin can read less. Combining this with the fact that the previous cycle low has always reached 85% of all-time highs and Bitcoin is not holding above $ 19,000, then the cards have fallen to $ 12,000.
Glasnod further noted that the Mayer multiple has fallen below its previous cycle. It previously had a bottom at 0.511 but it touched a new low of 0.487 in June. The report further noted that in 4,160 business days, an MM below 0.5 was recorded in just 2% of business days. It represents a change in the basic models that are used to value digital assets.
MM falls below previous bottom for the first time | Source: Glassnode
Crypto investor sentiment has declined
The attitude of investors in the market has been declining for some time now. The fear and greed index has now passed its longest stretch in the realm of extreme fear and it doesn’t look like that will change any time soon. Interestingly, the index also closed in the area of extreme panic last month.
BTC declines to $20,600 | Source: BTCUSD on TradingView.com
These feelings shine through in the exchange flow. Glassnode Warning Shows that গত 5.6 billion has flowed into BTC in the last week alone. Although the outflow has outpaced the flow, the mere move to a centralized exchange shows that the sell-offs continue the order of the day.
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However, Teether Inflow is drawing a good picture for the crypto market with নেট 4.3 billion in positive net flows last week. This indicates that investors are transferring their stablecoins to the exchange, perhaps to invest in other cryptocurrencies, which indicates a return to positive sentiment among investors.
Featured image from Coingape, chart from TradingView.com
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