The statistics have recently revealed a huge shift in the overall market cycle in the crypto sector. Julio Moreno, a well-known analyst on CryptoQuant, has asserted that the Bull-Bear Market Cycle Indicator has pointed toward the start of a BEAR market, signifying a likely downturn in the market. The analyst added that this incident took place for the 1st time after January last year. Moreno took to his official X account to provide the details of this development.
The Bull-Bear Market Cycle Indicator has flagged BEAR phase (high blue area) for the first time since January 2023. Other periods when it has flagged BEAR phases for a limited period have been the COVID sell-off (March 2020) and the Chinese mining ban (May 2021). It then… pic.twitter.com/hwJRFjJuFg
— Julio Moreno (@jjcmoreno) August 6, 2024
Popular Crypto Indicator Signifies a Bearish Trend
The CryptoQuant analyst noted that the Bull-Bear Market Cycle Indicator has historically been precisely anticipating market trends. It operates as a momentum metric that focuses on gauging the market sentiment. With this, it analyzes the difference between the 365-day moving average and the Profit and Loss Index. This indicator reportedly plays an important role in detecting market cycles.
The Bear Cycle indicator has dropped below the level of 0 as well as the 365-day moving average thereof. This development shows a bearish market stage. Historically, the respective indicator has effectively flagged chief market transitions. One such instance takes into account the example of COVID-19 when the sell-off took place in 2020’s March. Another instance occurred in 2021’s May.
The Development Shows the Start of a Period of Price Declines and Fewer Returns
During these times, this indicator precisely anticipated provisional bearish phases. Interestingly, it predicted the beginning of the lengthened bear market back in 2021’s November. The respective move underscores its reliability. As per the CryptoQuant analyst, the latest indication points out that the market may be moving toward a zone of price declines and fewer returns.
