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Current Cryptocurrency Bear Market A Glimmer Of Hope: Top Analyst

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While most of us fear the bear market, here’s a top cryptocurrency analyst who believes otherwise.

The global digital currency ecosystem is currently going through a large negative correction after having a fantastic start to the week. According to information from CoinMarketCap, the total market capitalization has decreased by 3.06% to $1.10 trillion as of this writing. A 3.68% decline in the price of Bitcoin (BTC), which put the most valuable cryptocurrency at $24,073.41 per unit, contributed to this negative collapse. The worst performer among the top 10 cryptocurrencies was Polygon (MATIC), which saw its value fall by 8.43% to $1.35. Ethereum (ETH) also saw a loss of 3.63% of its value to $1,642.19 in value.

Despite how bearish the market appears to be, leading cryptocurrency analyst Ran Neuner noted that when compared to the larger U.S. stock market, it is actually highly positive.

The Dow Jones Industrial Average has lost nearly 697 points in what appears to be one of its worst day closures since the year’s beginning, while the tech-heavy Nasdaq Composite Index is down by 2.50%.

While the cryptocurrency fall is worrying, it is simply a reflection of the highly connected financial sector. The larger market is still registering different outlooks over inflation.

Could Cryptocurrency Critics Be Right?

The ideal market cycle frequently has highs and lows, and in the opinion of the industry’s supporters, this is simply a normal correction.

Yet, according to detractors like Peter Schiff, this could signal the beginning of an approaching reversal of all the advances the sector has made since the demise of the FTX Derivatives Exchange. It won’t come as a surprise to see outspoken detractors like Jim Cramer urge his followers to sell their investments at the right time to cut their losses.

In a recent tweet, Bitcoin’s arch-enemy Peter Schiff projected that the largest cryptocurrency’s price would once more fall below $18,000.

The investor has claimed time and time again that Bitcoin’s growth is solely the result of speculation, downplaying its technological advantages. The business is accustomed to shocks, and the most recent historical tendency indicates that the current decline will only last a short while.

Bitcoin At $18,000 Due To Whales, Or Just Watching Market Fails?

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Bitcoin [BTC] was pushed to a two-year low by the erratic bear market. While the general public anticipated that BTC would have a difficult time recovering, it may have already begun to lay the groundwork for this. The biggest cryptocurrency in the world soared to a monthly high of $18,318.53 earlier today. This gave the market a break and raised the prospect of BTC advancing in the direction of $19K or possibly $20K in the near future.

Whale addresses holding 100 to 10,000 BTC may have been the cause of the most recent change in the price of Bitcoin. There are currently 15,848 addresses holding a significant quantity of bitcoin. It should be mentioned that there are currently 43,460,000 Bitcoin addresses in existence. Therefore, 0.0364% of all BTC addresses are owned by these whales.

But did the price of Bitcoin depend on these whales? The market has seen 159 new addresses with 100 to 10,000 BTC enter over the past three weeks. It should be highlighted that during the past 10 months, this location has experienced the quickest increase. Over the past nine days, all of these whales have been able to buy a staggering $726 million worth of Bitcoin.

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The fact that these whales were stockpiling rather than dumping came as a tremendous comfort, even though it wasn’t the only factor in BTC’s most recent gain. Santiment noted that Bitcoin whales engaged in a 14-month dumping binge. Expanding on what Santiment already stated,

“..we may be seeing a turnaround now. Not necessarily with prices just yet… but at least with whales finally accumulating rather than dumping. We have seen the largest streak of new BTC whale addresses being created in 10 months.”

Prominent stablecoins were also accumulating more and more, as seen in the photograph.

Will Bitcoin Take Its Throne Back?

The community, though, appeared to be optimistic about BTC trending near $19K.

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The BTC/USD daily chart’s signal suggests that the value of the king coin may be increasing. Below the candlesticks, the Parabolic SAR indicator created a support line that prevented the asset from falling further.

As the MACD line was above the signal line, the MACD indicator made a bullish crossover. The Relative Strength Index [RSI] indicator, which held above the 50 median, also indicated a positive idea.

The report from Santiment and the aforementioned chart showed that an upturn might be possible. Although the community has reasons to be upbeat, news about FTX, the conflict between Ukraine and Russia, and Covid could have an influence on the market.

Bybit CEO Plans To Again Cut Off Staff Amid Bear Market

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To reduce losses, businesses are forced to reevaluate their business plans in the bear market. Bybit co-founder and CEO Ben Zhou tweeted about intentions to cut staff as part of continuing organizational changes as the company refocuses its efforts on the worsening bear market. 

One of the biggest crypto exchanges, Bybit, announced job cuts in an internal memo on June 20th. Although the organization’s size had increased internationally, the internal letter claimed that total company growth had not kept pace.

The CEO at that time claimed that by eliminating redundant tasks and creating smaller, more agile teams, he was looking at how he might assist Bybit in becoming more effective.

However, the CEO, Ben Zhou, said in its Twitter thread on December 3rd that the anticipated downsizing would affect everyone. They are all disturbed by the fact that many of their beloved Bybuddies and some of their closest friends will be affected by this reorganization. 

He also assured that they would do their best to accommodate each person’s demands and make the transition as easy as they could for their affected employees.

For those remaining individuals who will continue Bybit’s vision and goal:

It’s important to ensure Bybit has the right structure and resources in place to navigate the market slowdown and is nimble enough to seize the many opportunities ahead. That way we can continue to deliver the crypto ark to the world with even more drive and passion.

The Hardest Time For Crypto Companies, Including Bybit 

Many crypto companies decreased their workforces in November, according to statistics from the tracking website layoffs.fyi, due to the current unfavorable conditions in the cryptocurrency market.

Kraken, the most significant Bitcoin exchange in the world, announced at the end of November that it is decreasing its worldwide staff by 1,100 workers, or 30%, to meet the market’s demands. 

Additionally, at the same time, the American cryptocurrency exchange Bitfront, which was supported by the Japanese social networking company Line Corp, shut down.

Moreover, six months after terminating dozens of workers, Bitso, the largest crypto brokerage in Mexico, had again laid off workers. According to former workers, the corporation laid off roughly 100 individuals in total between Mexico and Brazil, where there were 500–600 employees.

Although the employee could not provide an exact figure, there is a rumor going around the workplace that 25% of the workforce had been let go.

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Here’s How Cryptocurrency Miners In Russia Are Capitalizing On The Bear Market

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The continuing cryptocurrency mining problem doesn’t seem to be bothering Russian cryptocurrency miners, since local demand for mining equipment is said to have increased in Q4 2022.

According to local news outlet Kommersant, several Russian suppliers of crypto mining hardware have experienced a sharp increase in demand for application-specific integrated circuit (ASIC) chips made specifically for mining.

Local dealer Chilkoot claimed that their ASIC sales in November and October were greater than all of its sales for the third quarter. The distributor reportedly sold 65% more hardware in the last nine months than in 2021.

Chilkoot development manager Artem Eremin said,

“We are working with legal entities, and we see that they began to buy 30% more equipment in one transaction than at the beginning of the year.”

The demand for crypto mining services has reportedly grown by 150% over the last 10 months at BitRiver, Russia’s largest data center facility.

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Russia is reportedly experiencing a surge in demand for cryptocurrency mining equipment at a time when the mining sector is struggling; in late November, total Bitcoin mining revenue fell to two-year lows. Due to the significant losses brought on by the current bear market in cryptocurrencies, several mining companies, like Argo Blockchain and Core Scientific, have even questioned if they would be able to continue operations.

Russian Miners Stockpiling Cryptocurrency ASICs

Russian miners are likely stockpiling more crypto ASICs as a result of the country’s cheap energy and lower prices for mining equipment.

Despite a sharp decline in the price of bitcoin this year, 51ASIC co-founder Mikhail Brezhnev allegedly stated that mining Bitcoin in Russia can still be viable. The executive claims that mining 1 BTC with the most up-to-date equipment may produce about $11,000 at an electricity cost of $0,07 per 1 kilowatt-hour. According to data from CoinGecko, Bitcoin is currently trading at $16,975, down around 70% over the previous year.

According to Vladislav Antonov, a financial analyst for BitRiver, the current market environment has been advantageous for the Russian industrial cryptocurrency mining business. He pointed out that a decline in purchasing prices, which have gotten as near as feasible to the cost of manufacture, stimulated demand for ASIC equipment in the wholesale market. According to reports, the expert suggested that was the ideal place to start investing.

A mining entry during a bear market, in Antonov’s estimation, may be able to produce “substantial profit of tens of percent” over the course of three years.

Will Ethereum succumb to the bears? Here’s what might happen

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For a while now, the Ethereum community has been eagerly awaiting the Merge. However, the community might be experiencing yet another development as a result of this network-wide upgrade. The majority of the crypto community did not appear to take this well. Although it is unclear how the ETH miner-led hard fork will fare, a number of platforms have shown their support. Amidst all this havoc, ETH seems a little inclined towards the bear market.

In a recent tweet, Scott Redler of T3 Trading Group expressed concern that Ethereum, the second-largest cryptocurrency, might be headed for a decline below $1,000.

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Source: Twitter

According to Redler, if the S&P 500 index tests its June lows once more, a negative scenario will take place.

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Source: Tradingview.com

The second-largest cryptocurrency reached its all-time high on the Binance market on August 14 at $2,031. The increase in popularity was related to the increased anticipation for the impending merge upgrade. The Bitcoin rival, however, immediately saw almost all of its recent gains reversed as Ethereum’s stunning climb came to a grinding halt. The second-largest cryptocurrency, according to Redler, allegedly became negative after it broke the rising channel near the $1,815 mark.

A bear flag formation developed on the chart and resolved lower after bulls missed an additional rally opportunity earlier this week. Additionally, Redler tweeted that early in August, the price of Ethereum might reach $2,100. He correctly foresaw that the price of the second-largest cryptocurrency will go below the $1,400 mark in early June. After falling to an intraday low of $1,475, the price of Ethereum is currently trading at $1,490 on the Binance platform as of the time of publication. Despite the fact that the merging update is anticipated to happen in just a few weeks, the cryptocurrency is still under significant bearish pressure.

Mark Cuban is bullish on Ethereum

With signs of ETH seeming bearish, Mark Cuban says otherwise.

In a recent interview with Fortune, “Shark Tank” star Mark Cuban expressed his continued “super bullishness” on Ethereum, the second-largest cryptocurrency by market value.

The merging update would significantly reduce Ethereum’s energy consumption by a factor of 1,000 and is anticipated to happen in less than a month. This, according to Cuban, is a “significant” factor that might support the bull argument for Ethereum. Nevertheless, the wealthy man held back from offering any specific price forecasts since he is unsure of how the cryptocurrency’s price will respond in the near future to the merging update. Cuban thinks there will be enough applications to propel the second-largest network’s growth.

At the same time, Cardano, one of Ethereum’s primary rivals, continues to inspire Cuban great scepticism. Despite the fact that smart contracts have been available for more than a year, he recently stated that Dogecoin was more beneficial than Cardano. 

Meet Europe’s Cheapest Spot Bitcoin ETF With Bear-Market Resistance

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21shares has launched Europe’s new low-cost spot Bitcoin ETF in Switzerland that claims to withstand the bear market.

Announcing its Crypto Winter Suite, the world’s largest issuer of cryptocurrency exchange-traded products [ETPs] rolled out the first product in the suite dubbed as 21Shares Bitcoin Core ETP [CBTC], on the SIX Swiss Exchange.

According to the press release, CBTC has a total expense ratio of 21 basis points [0.21%] signifying the 21 million cap on Bitcoin – which is 44 basis points [0.44%] below the next lowest product on the market.

In order to achieve this, a portion of the underlying crypto would be lent out on a fully collateralized basis to balance out the operating costs. Lending on CBTC will commence once the product achieves sufficient scale, the blog read.

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Meet Europe's Cheapest Spot Bitcoin ETF With Bear-Market Resistance 7

Beyond that, the ETP curator’s next focus would be creating bear-market compatible products. Arthur Krause, Director of ETP Product at 21Shares stated,

Given the current market environment, many investors are looking to ‘buy-the-dip’ and generate the maximum potential long-term return.Our Crypto Winter Suite will provide ways for investors to dip their toes in the water at some of the lowest costs on the market.

Last week, ProShares debuted its first short bitcoin-linked ETF in the United States under the ticker BITI. The new fund went live on the New York Stock Exchange NYSE, TronWeekly reported.

Bitcoin ETFs Face An Uncertain Future

During the market turbulence in early June, Bitcoin ETFs plummeted as stocks trade sharply lower with some dropping as low as 70%.

Even though Bitcoin has slid back to the $20k range and the market remained on a bearish tone, sell-offs have eased now.

On June 27, Grayscale Investments announced that it is gearing up to work with bigwigs market makers Jane Street and Virtu Financial if the SEC approves their Grayscale Bitcoin Trust [GBTC] to be converted into a spot ETF.

GBTC then was trading at nearly a 30% discount to the net asset value. The discount would likely be removed if the trust converted to an ETF.

Moreover, the SEC’s decision on GBTC’s spot ETF application is expected to be announced by July 6th, 2022. Irrespective of the outcome, CEO Michael Sonnenshien reiterated that his firm is committed to converting GBTC from a trust to a spot ETF.

Bitcoin bears scare China’s crypto market

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Numerous predictions about Bitcoin [BTC] have been made possible by the start of the bear market. A few people appear to be certain that this bear market is the end of the king currency, while others seem to think that this setback is simply a catalyst for a potential bubble. Several nations proceeded to implement market restrictions as these forecasts poured in, but one country persevered in its animosity toward bitcoin.

The history of the world’s largest cryptocurrency in China is noteworthy. China at first became a BTC hotspot. The nation provided the most well-known crypto platforms, and for the longest time, it saw the biggest level of crypto activity. The industry’s degree of decentralization, meanwhile, did not sit well with the Chinese government. As a result, the nation later said goodbye to all things cryptocurrency. China still records activity in mining and trading despite this.

As a result of the market’s decline, the Chinese government continued to terrorize its populace by claiming that the world’s largest cryptocurrency would soon reach zero. According to a recent article from the news portal for the Chinese people, Economic Daily, “Bitcoin was nothing more than a string of digital codes.” Users were informed by the site that purchasing low and selling high were the primary methods for generating returns. The newspaper further stated,

“In the future, once investors’ confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is utterly worthless.”

Saylor’s lifeboat- Bitcoin

Michael Saylor of Microstrategy has frequently stated his support for Bitcoin. Saylor has been a well-known BTC advocate, holding onto his money and encouraging others to buy additional BTC. Saylor was bullish once more despite the collapse of the biggest cryptocurrency in the world. He said,

“Bitcoin is a lifeboat”

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Michael Saylor, CEO of Microstrategy

Furthermore, there is a significant gap in the market as BTC prices keep falling. Although the future of the cryptocurrency is uncertain, the holders anticipate a potential rise. At the time of writing, Bitcoin (BTC) was priced at $20,597.97 with a daily rise of 1.36%.

Cardano [ADA] Stumbles Under Bear’s Might as Market Bleeds Red

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After an extended bullish run, the cryptocurrency market seems to have hit a red wall. Prices across the board fell rapidly as almost all the major altcoins followed Bitcoin’s footsteps. IOHK’s Cardano, which had been enjoying a stellar September fell into the bear trap with millions wiped off its total market cap.

Cardano’s latest fall came at a time when users were expecting it to cross the $3 mark. At press time, ADA was trading for $2.34 with a reduced market cap of $74.04 billion. An 11 percent price drop lowered the cryptocurrency’s daily trading volume to $11.3 billion. This trading volume was enough to let it maintain its third rank on the cryptocurrency charts.

Cardano 1 hour:

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Cardano [ADA] Stumbles Under Bear's Might as Market Bleeds Red 11

Cardano’s price action over the past 24-hours has been representative of the entire cryptocurrency market. The bear’s takeover caused immediate price supports to crumble with Cardano’s settling near the $2.2 mark. The price capitulation period still seems to be unclear as the red candles had overtaken their green counterparts.

Relative Strength Index: Cardano’s hourly RSI struggled to break away from the oversold zone as the graph slowed on its ascent. The low hold meant that more and more users were selling their ADA rather than hodl it.

Chaikin Money Flow: The CMF in the short term was surprisingly bullish with a k shaped curve forming upwards. This indicated the strong capital flow into the Cardano market.

Bollinger bands: The sudden price drop created a massive Bollinger cloud, the likes of which have been unseen for weeks. Both the upper and lower Bollinger bands converged towards one another after an exciting 12 hours.

Cardano 1 day:

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Cardano [ADA] Stumbles Under Bear's Might as Market Bleeds Red 12

Cardano’s price crunch was visible in full view on the long-term chart with strong red candles dominating the past week. After hitting all-time highs towards the end of August, Cardano’s current bearish predicament was evidence of a market reigning in its assets.

Chaikin Money Flow: In the long term, the CMF had fallen from its perch above the zero line. If the cryptocurrency continues on the same path, Cardano would soon crash below it for the first time since July.

Relative Strength Index: The panic caused by the bear run was enough for a large number of investors to sell their assets. A strong RSI would contribute to a confidence boost in the ADA ecosystem.

Bollinger bands: The Bollinger bands fell into a parallel restricted movement with a large cloud mouth. Cardano’s movement in bearish lands may cause the cloud to open up and be unable to contain the red candles

It seems like Bitcoin’s bear market is confirmed cautions Ki Young Ju

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At this point in time, there might be only a few people who are actually bullish on Bitcoin apart from Michael Saylor. Since the crash of 19th May, recovery attempts have been faced by intense selling at resistance points. While the weeks that followed also accompanied buying at dips, this trend appears to have taken a back seat.

Instead of buying the dip, the retail crowd is now in anticipation of bullish signs to emerge as selling pressure grapples the market. But the situation is getting bleaker by the day and there seems to respite in the offing. With the crypto-asset so far failing to recuperate from its 50% drawdown from the April peak, the bear market narrative for Bitcoin has never been stronger.

According to the CEO of CryptoQuant, Ki Young Ju, it seems like the Bitcoin bear market is confirmed. He backed his argument with the latest trend that has been witnessed as whales were offloading their BTC to exchanges.

While admitting that there is no a single indicator that can tell the future for sure, the exec went on to add,

“I expect my BTC bearish bias won’t last long (maybe just a few weeks) because the market looks good in terms of supply/demand in the long term (e.g., Stablecoins ratio(USD) and SSR). So don’t get me wrong, I’m not saying it’s over.”

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It seems like Bitcoin's bear market is confirmed cautions Ki Young Ju 14

Meanwhile, CoinShares‘s latest weekly report also echoed a similar sentiment. It revealed that the digital asset investment products witnessed a third consecutive week of outflows summing up to a total of $79m in what is now the longest bear run in outflows since February 2018.

Bitcoin’s tense market conditions

The choppy on-chain dynamics did little help to support the price of Bitcoin. In terms of active addresses, the figures have dropped by 24% from the generally sustained peak of 1.16 million that was witnessed from March to early May this year. Currently, the addresses, however, stood at 884,000, a figure that was last seen a year back.

In addition to that, there has been a dramatic decline with respect to the USD value settled on the Bitcoin network which currently sits at -63% compared to the recent highs established in May. According to reports, Bitcoin is settling approximately $18.3B per day, thus suggesting an equivalent volume to Q1 2021.

Bitcoin Price Analysis: Bears Push BTC/USD Pair Below $12,000, What Next?

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The price of bitcoin is struggling to settle at higher support within the $11,000 price range after being rejected at its new 2020 high of $12,492. The bitcoin price decline was triggered by falling below the most hesitant of supports at $12, 200. The subsequent support zone, $12,000 failed to step up to the task, allowing bitcoin to plummet to lows of $11,800.

At press time, buyers are still struggling to build a support zone at the $11,800 price level, in anticipation for the BTC/USD pair to break past $12,000. Bitcoin price is currently revolving around $11.935. The pair is being held in place by the  100 Simple Moving Average (SMA) in the 1-hour range, preventing further sharp declines.

Bitcoin Price

Bitcoin price forecast

As far as the current technical point of view is concerned, there are two likely possibilities for the BTC / USD pair. For the most part, if the price breaks past $12,000 once again, new buyers are likely to enter the market, pushing the price of bitcoin past the bear at a price level of $12,000. The great confidence of the bulls would certainly have pushed BTC close to $12,500.

Second, if bears keep pushing, BTC price action could result in a decline of $11,800 below the temporary support zone. In the event of such a scenario, the BTC / USD pair would drop to $11,750 in the search for a lower level of support. Deficits could be further extended to $11,500 and $11,250 respectively.

In the meantime, the MACD and RSI indicate the existence of bears in the market as of Wednesday’s Asian session. The MACD is trapped below the mean line -37.63, signaling a bear run. However, the low volume and volatility depict that losses will be short in the near future.

Moreover, the RSI is somewhat pointing upwards, signaling the presence of bulls in the market, only that they are not strong enough to push the price further up.