Join the larget crypto conference of 2022 in Bitcoin
Bitcoin
$ 39,046

Crypto Crash! Will 2022 be a Crypto Bear Market? Here’s what we Know

0
(0)

Bitcoin has reached a new low again in the last few hours. On top of that, the total market cap of cryptocurrencies fell towards USD 1.6 Trillion or around -20%. Major cryptocurrencies continued to lose ground and are now just around their respective support areas. In November, many investors were still hoping for a Bitcoin price of $100,000. Is 2022 a Crypto Bear Market Year?

Crypto Market Cap Below $2 Trillion

Bitcoin, the biggest crypto by market cap, has dipped below $36,000 in the past few hours. The crash followed a brief “fakeout” in which the price surged above $43,000 but dropped back down to $41,000 extremely quickly. This shows that investors are still unsure of the market direction, and traders are rather holding the horses. 

The strong psychological support of BTC at $41,000 collapsed and prices fell below the $40,000 mark for the first time in months. As a result, the price temporarily fell below $36,000, which was the lowest Bitcoin price since late July, the bottom of the major spring correction. All cryptos followed the same course of action, and all cryptos lost an average of 20% in the past few days.

On the other hand, the equity market also suffered a lot. Many hedge fund managers started reassessing their portfolios. Anticipation of a lower market is expected, as the uptrend was extended for more than 1 year now. Additionally, looking at the previous market trend of both cryptos and equities, we can see that an adjustment was overdue.

Total Crypto Cap 1-week chart showing the recent Crypto bear market
Fig.1 Total Crypto Cap 1-week chart – TradingView

A Crypto Bear Market could be Coming Soon

In the last few weeks, there was still hope that the Bitcoin crashes could only be a medium-term correction and that the price could become bullish again in the first quarter of 2022. But the high number of drops to below $40,000 raise doubts as to whether 2022 could not be dominated by a Bitcoin bear market after all. When Bitcoin moves, the entire crypto market moves as well. This bear market trend could be attributed to the entire crypto market as well.

Now is an ideal point to get in cheaply. Buy bitcoin on crypto exchanges  Binance ,  Coinbase ,  Kraken  and  Bitfinex !

The hopes were based on the fact that the current all-time high of $68,000 is very unlikely to be the peak of a bull market, given the major bull markets of 2013 and 2017. But now it looks like we could actually enter a Bitcoin bear market.

How Long will the Crypto Crash Last?

Historically, a long-term bear market has meant an 80% drop from Bitcoin Peak in the previous bull market. At the moment we are not even at 50%. As such, there is still hope that the long-term bullish cycle is still in place, but has only greatly lengthened in 2021 and 2022.

Accordingly, we would not experience a “real” crypto bear market in 2022, but only a severe price correction. However, with the latest developments on the market, it is becoming increasingly unlikely that Bitcoin will reach new all-time highs in the first quarter of 2022, as we thought possible 1-2 months ago.

You can now buy Bitcoin cheaply on the crypto exchanges  Binance ,  Coinbase ,  Kraken  and  Bitfinex  .

Passive crypto income
Passive crypto income© Cryptoticker

The post Crypto Crash! Will 2022 be a Crypto Bear Market? Here’s what we Know appeared first on CryptoTicker.

Crypto Crash! Will 2022 be a Crypto Bear Market? Here’s what we Know  

Don’t miss a thing, sign up for our newsletter

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

 
BINANCE - The Exchange with the Most Trading Volume in the Wold

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

TELEGRAM
Cryptonews24 Channel Chat