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Is the Bitcoin, SHIB and Altcoin Bear Market Ending?
2022 started on a pretty rough note for Bitcoin, ETH, ADA, SHIB, and the entire cryptocurrency market. While the bear market is not a new phenomenon, what happened this year was the most violent in crypto history. In this article, let's look at the current market and the possibilities of mini bull runs. Portfolio management in downtrends will be among the questions we will answer.
Bitcoin, ETH, ADA, and SHIB melt more than 60% from peak prices
As per reports, as a result of the 2022 bear market, the crypto space has lost around $2 trillion in value. Bitcoin, for example, wiped out more than 66% of its value. It is currently trading at $23,000, down from the ATH level of November 2021 at $69,000. ETH, MATIC, BNB, ADA, SOL, DOT, etc. Altcoins have also recorded varying degrees of price losses.
Are there mini bull runs in a bear market?
Before we move forward to find out if there are mini bull runs in a bear market, we need to understand what they are. By popular definition, a bear market is a 20% drop from a price peak. A bull market, on the other hand, does not have a clear definition. However, it is widely accepted that a bull market is a market where "prices rise or are expected to rise".
It is also normal to have mini bull runs in a bear market. These definite movements are called “bear market rallies”. Taking the 2022 market as an example, we recorded price increases despite the general downward trend in the market. Bitcoin (BTC) is currently 6% more valuable than in the last 30 days. This comes even though its price is still a long way from the ATH level of November 2021.
There is also the possibility of seeing these mini bull runs covering BTC, SHIB, and all altcoins as bull market trends. Therefore, it is important to be able to distinguish uptrends from mini bull runs. So, how should these periods of red color be managed?
How to manage a bear market?
How do you steer your portfolio in the current bear market? There are a few important steps to consider when taking a position in a bear market. AltcoinBuzz analysts list a few items for portfolio management in a bear market.
- Diversify your portfolio: Instead of investing in specific crypto, the crypto space is more focused on NFTs, Defi, etc.
- Hold their position: It is also important to avoid withdrawing your assets. Especially if you already have a deficit. Therefore, it is recommended that you stay in place and weather the storm.
All in all, despite the current crypto market trends, the current analysis shows that the crypto winter has bottomed out. An important aspect of this outcome is the price action of Bitcoin (BTC). In its 13-year price cycle, the 'leading crypto' has never been below the lower band line longer. Other charts, signals, and factors confirm that the crypto winter is coming to an end soon.