According to the details, this year’s bearish market trend is the worst in history for BTC and other coins. It noted many BTC traders engaged in panic sell-offs even with losses to ensure they did not sink.
Volatility is one of the attributes that characterizes digital currency. Unfortunately, this is a trend that can cause many inexperienced investors to lose funds with crypto ownership. In some cases, many problems can affect the bear market. Although some experienced players will use bear trends to build crypto portfolios, the existing bear market will not be profitable.
The 2022 trend looks to be the worst in history. Glassnode, a blockchain analysis company, has released a poor overview of the 2022 bear market. Furthermore, the company noted many factors that contributed to the decline in the crypto market price.
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The analytics firm reports crypto market trends with the tag A Bear of Historic Proportions. The report, released on Saturday, explains how the Bitcoin price decline shows 2022 as the worst year for BTC.
Some of the factors listed for the BTC bearish trend in 2022 include the following:
- Bitcoin methodically falls below its 200-day moving average (MA).
- The realized losses are cumulative.
- Negative changes of the BTC price.
By Glassnode record, The price of BTC and ETH became less than the previous all-time high cycle. Such a decline has never happened in the history of cryptocurrency.
The Glassnode report shows the severity of the bear market in 2022 as BTC falls below the 200 -day MA half mark. In particular, the first and visible red sign from the bear market is when the BTC spot price falls below the 200 -day MA. Also, it can exceed the 200 -week MA when the situation becomes critical.
BTC Price Falls Below 0.5 Mayer Multiple, MM
In addition, analytical firms are displaying extreme conditions in the crypto bear market due to the spot price falling on the realized price. With the occurrence of this situation, many merchants are selling crypto tokens despite incurring losses.
In the illustration, Glassnode announces that the BTC is down below 0.5 MM (Mayer Multiple). This level makes the first price go down as far as since 2015. Typically, MM is a measure of price change when it is above or below the 200-day MA.
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Implications mean over-buying if above or overselling below. Also, data from the company shows MM of 0.487 for the 2021-22 cycle against the lowest cycle of 0.511.
The company said this is a historic occurrence because it is not uncommon for the spot price to fall below the realized price. Finally, by summarizing all the negative values in the crypto market, the analytical firm concludes that the market is in transit to the capitulated state.
Featured image from Pexels, charts from TradingView.com and Glassnode