🔮Bitcoin faces a critical technical test: entering a bear market or a bull market reversal? 📉
👋 Hello everyone, today we focus on the news of Bitcoin's key technical analysis. Bitcoin (BTC) is at a critical stage in this market cycle! . Market observers are hotly discussing whether Bitcoin will enter a bear market next, or rebound to a new high at a key node?
First, we focus on the P&L Index, which reflects the profit and loss ratio of investors on Bitcoin.
In the historical cycle, whenever the P&L Index falls below its 365-day moving average, the Bitcoin market often ushered in a wave of plunges. As can be seen from the figure below, the two breaks in the spring of 2021 and the beginning of 2022 have ushered in a sharp drop in the market.
Now, the P&L Index is approaching this key moving average for the third time. As for whether it will fall again this time, causing the Bitcoin price to collapse? It is still unknown!
Next, let's take a look at the next chart of indicators used to judge the bull and bear cycles of Bitcoin. Historically, whenever this indicator falls to 0 and enters the negative zone, Bitcoin enters the bear market phase.
As can be seen from the figure, the first breakout occurred in 2021, probably due to the epidemic, which made the data not referenceable. The second and third breakouts followed, and Bitcoin officially entered the bear market phase.
At present, we are approaching 0 for the fourth time, and the market is speculating whether this means the beginning of a bear market?
However, in my opinion, we don’t need to over-interpret and panic about these data. As long-term investors, we should focus on the big picture. Because from the entire historical cycle of Bitcoin, there is no obvious sign that Bitcoin is about to enter a bear market.
At the same time, the media uses articles and chart analysis to claim that Bitcoin may enter a bear market. The motivation behind this is likely to cause market panic and induce investors to panic sell, so that institutions and venture capitalists have the opportunity to absorb Bitcoin at a lower price.
Finally, do you think it is possible that Bitcoin is entering a bear market? Welcome to share your views in the comment section!
