Bitcoin priceThe recent fluctuations brought up an important question in the minds of investors: Is the current decrease in the beginning of a long bear market or an ordinary market correction? Data showing the existing profit-zarar ratio in the market can help investors to find the answer to this important question. According to Cryptoquant Analyst Crypto Dan’s analysis, the current situation seems likely to have a usual correction process rather than a large -scale bear cycle. Because the limited previous rise shows that the market does not overheat and the risk of decrease is lower.
Bear cycle detection in Bitcoin
Before a bear cycle BitcoinThe price of usually rises quickly and hard. In this process, investors’ net profit margins increase significantly. However, when the price goes below the average cost level (realized price) of market participants, the net profit margin falls quickly and deeply. According to Crypto Dan’s analysis, investors are in their hands BTCIt is forced to sell the ones with damage and this sales pressure causes the price to fall further. In the graphs, this is clearly shown with red boxes.
The most prominent feature of the bear cycle is that the market has difficulty recovering for a long time. While investors’ profit margins remain low, new purchases are limited due to loss of confidence and the market enters a long -term downward trend.
Ordinary Correction Periods for Bitcoin
Although the process is similar in usual market corrections, size is much more limited. In such periods, the size of the previous rise in the price of Bitcoin is relatively lower, so the increase in investors’ profit margins and the following decrease are more moderate than the month of the month. During these periods, the decline in net profit margins are much lighter and investors often adapt to market conditions.
Crypto stressed that the last wave of rise in existing market conditions is limited and that possible risks on the market are under control. According to the analyst, investors can follow the process more cautiously without panic.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
