The Bitcoin price value is in a slump once again. At present, Bitcoin is trading for $33K and struggling to adhere to the support level. When Bitcoin price is not dropping down, it is barely hanging on by moving sideways.
The only direction that Bitcoin price is not choosing is upward. The debate for the long and short-term bear market seems to have overtaken most investors. However, some market analysts are opting for a bird’s eye view for Bitcoin, and the far end does not seem very bright. Independent of the fact whether the bull run will continue for now or not, it has been postulated that the eventual bear market would be the worst one in the history of the flagship crypto.
A ‘secular market’ is a trade zone where the market is influenced by ‘long-term’ metrics and factors. These long-term forces can be in effect for many years and determine the rise or fall of a particular asset class.
The Great Recession has already eased up, and the economy entered into a neutral territory that kept it out of the depression zone. Even Bitcoin was able to breach a record ATH of $64,800. However, the Average Directional Index (ADX) has not hit below 20, which would mark the end of all positive trends. ADX is a measure of trend strength.
Veteran Trader Claims that the Crypto Market is Ruled by Sentiment and Emotion
Thomas Bulkowski is a crypto market trader with 35 years of experience in the field of investment. He suggests that blockchain is a relatively new technology and it is a highly speculative asset class. Unlike traditional stocks and trade commodities, the technical indices for crypto market prediction are still developing. For the most part, virtual currencies are ruled by sentiment and emotion. A few technical indices such as Elliot Wave Theory can show results with some degree of accuracy.
Elliot Wave Theory comes into effect when the price of an asset class moves too quickly and too fast, represented in a special motive wave in the 5th position. When the 5th wave breaks down, a correction occurs, causing the asset class to crash below $1000 and above $3000.