Bitcoin was invented in the year 2010 with the efforts of an anonymous programmer named Satoshi Nakamoto.
He devised the protocols, rules, and regulations which are being followed since their inception. These are the rules that are responsible for the well-being of the most popular crypto asset of all time. The protocols and other regulations have always tried to save the price of bitcoin from the volatility of the market and have always helped the coin to flourish on its own in manifolds.
This can be witnessed from the bull phase of the market that kicked bitcoin’s ball out of the stadium for unexpected gains and much more. Not only bitcoin, but the derivatives that were dependent on bitcoin for their survival, also enjoyed their stay with bitcoin! But, in recent times, the conditions are not favorable for bitcoin. You can improve your trading skills by visiting the website of the most recommended trading platform at https://bitcoinera-dk.com/.
We have witnessed heavy losses to investors and the bear phase for the whole market. In the entire history of bitcoin and other cryptocurrencies, this phrase has never been experienced. In this article, we are going to discuss the chances that are indicating an end to this bear phase. So, let us start the journey!
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Market indications of bear and bull phase
The well-said terms for the conditions of a market are either it is in the bull phase or the bearish phase. The terms are related to the situation and current position of securities in the market. If the price of securities is on the rise, the market conditions are considered the bull phase.
On the other hand, if the same securities are falling in their price, the phase of the market is referred to as the bearish phase. For the benefit of the market, the bull phase is generally preferred. The bull phase represents fun, flourish, and gain.
Decrease in demand for an asset
There are many crypto analysts which have pointed toward a significant decrease in demand for bitcoin. Many investors have started switching their interest to other stablecoins and as a result, the number of active investors is constantly decreasing from the network. This is a bad sign for the investors but for the market, this condition refers to a decrease in the bearish phase.
The decrease in the number of investors will help to lessen the saturation due to the available coins which are now limited. The analysts have directed the market investors that they should keep an active eye on this trend as this can lead to heavy negative prices and as a result, will lead to the increased potential for the reversal of prices and other trends.
Emotions related to this bearish trend
Though the market does not value the sentiments and emotions of an investor and works on the algorithm decided based on current market trends, emotions sometimes come in the way of investments. According to some genuine and world-class analysts, short-term emotions are responsible for investors to remain in bearish trends.
The SOPR refers to the expense output ratio too for the short-term investments having a value below the equal ratio that is one. Also, the studies made by some other analysts have shown that the investors that invested in the bitcoin market before December 2020, are now experiencing heavy losses because they thought that the bull phase will be there for always the market played a reverse card leading to loss and decrease in the value of bitcoin and the other derivatives of bitcoin.
The decrease in value causes some other cryptocurrencies to lose their value in the long run and not be valuable in the short run.