On Nov. 8, Bitcoin corrected from $9,200 to $8,650, causing the market sentiment to shift from greed to fear once more.
The recent correction made Bitcoin price lose the 200-Day Moving Average, which is a key indicator for many traders and investors who rely on it to determine bear/bull market cycles.
The reasoning for this comes from historical data, which shows that Bitcoin never dropped below this indicator in recent market cycles.
Previous examples of comparisons with earlier market cycles didn't hold up either, which were the 21-Week MA and the maximum correction of 40% that Bitcoin has seen in any bull market.
As seen in the chart, the price moved towards important horizontal support and one of the few areas that must hold to sustain a bull market.
Total market capitalization show bottom signalsTotal Crypto Market Capitalization 1-day chart.
Similar movements can also be seen here as the market is moving inside a narrow range, suggesting that a big move is in the works.
So is the cryptocurrency market back in a bear market with Bitcoin losing the 200-Day MA? The simple answer is no.
Macro wise, the market has been moving upwards all year and actually provided a significant return since January.
In other words, Bitcoin going below $7,300 would be a bearish sign for the entire crypto market.
Are Bitcoin and Other Cryptos Back in a Bear Market After Latest Drop?
Published on Nov 9, 2019
by Cointele | Published on Coinage
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