For several months now, investors have argued that the market has entered a bear market. A bear market is when a market experiences prolonged price declines. This is typically a situation in which security prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment. Now, some consider that the bull market or bull market is coming soon. This article is not investment advice.
An overall favorable context
Bitcoin (BTC) and Ethereum (ETH) are showing positive signs in the market. If the start of 2022 hinted at a bullish rally that would drive BTC above its all-time high of $64,000, then the dream turned into a nightmare. The market has indeed plunged to new lows, until entering a bear market. These two digital assets serve as a benchmark for many crypto holders to determine if the market is bullish or still bearish. However, this analysis could be wrong. Altcoins could experience a solid recovery, regardless of large cap tokens.
Amid the market decline, BTC showed positive signs this week. The price of BTC, which currently stands at $20,602, rose 3% on Saturday and remained stable throughout the day. Daily trading volume on the popular asset has also recovered on most exchanges from last month’s average. Bitcoin price has struggled over the past month, but now looks poised to break new resistance levels. Over the past week, it has increased by 13%.
The market after The Merge
Investors estimated that ETH would experience a massive price hike after the merger. It is clear that the opposite has happened, so that the price of the asset is found today at $1,456. Finally, the maxim “buy the rumor sell the news” seems to be verified here. Even though tech giants like Google are already backing ETH, the coming months are exciting but also uncertain.
While the market is likely to bull market again, it is more difficult to determine when. Since all digital assets have taken significant hits this year, nothing seems certain. The merger is seen as a turning point for cryptocurrencies. For bitcoin, this isn’t the first time it’s attempted to break up. Investors are wary of it now, and qualify these movements as a “bull trap”.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!