Bitcoin (BTC) has been in continuous bears since January, after falling, from the highest price of $ 20,000 to the current lows below $ 8000. In that period we have seen little acts, which make everyone entertained that we return to the moon. Unfortunately, each of these demonstrations was short-lived and after they ended, people became sad. Of course, all sorts of reasons continue to emerge, why bitcoin and crypto generally decline.
Mtgox trustee has become the biggest scapegoat for each of these drops. However, one of the reasons why not many people bring it up, is the fact that we are in a long time, and the interest in the crypto among the masses has been quite low for the last 4 months. Anyway, the reason for the downside, when will the bears end?
Although no one knows for sure when Bitcoin (BTC) and crypto will generally rebound, there are some clues that indicate the possible ending of this bear-run. The first may sound counterintuitive, but it is a good measure of possible market direction, and that is the sentiment of the average investor. If you go through YouTube videos, and other crypto forums, you will notice that there is an increase in negative sentiment towards bitcoin and crypto in general. People no longer have the enthusiasm they had in bitcoin a few months ago. It is an indicator that the average investor feels the heat, because it has been put into foreign territory by the market.
Essentially, we are at the point where many people have sold, and most of those who have not sold most are long-term HODLER. Therefore, the selling action is at the point where they can no longer maintain. In short, the sellers in the market are decreasing. Looking ahead we tend to see the consolidation phase, as the value / savvy buyer holds the market. This is the point at which many "institutional investors" tend to start admission. As the market begins to rise slowly because of this buying activity, the average investor will re-enter, and the market will set new highs again.
The second reason why we approach the end of the bear process is the increased adoption rate of bitcoin, even as prices continue to decline. That is an indicator that even though prices are in unfamiliar territory, companies really believe in technology. As adoption continues to increase, it will offer fundamental support not only for bitcoin, but for other cryptoes that also have an ever-increasing adoption rate. It will also give more trust to HODLER, as well as new investors with caution coming to Bitcoin (BTC). The combination of long-term holders and new value-based investors will push the value slowly, before the mass jumps later in the day at higher prices and pushes it higher.