Today’s Bitcoin Price Pump Rally Does Not Necessarily Mean The Crypto Bear Market Is Over
Today’s Bitcoin Rally Does Not Necessarily Mean That The Bear Market Is Over
We have seen a rally today in which Bitcoin’s price to over $5,000 USD for a while and, at the moment, the token remains at the price of around $4,750 USD. Was this the rally to end the bear market? Not quite, not yet.
Despite how good this new rally actually was and the fact that the resistance of the $4,200 USD barrier was broken, it is simply too soon to eagerly believe that the bear market has been finished for once and for all. Crypto markets are hard to predict, so some caution is needed at times like this one.
Is This The Start Of The Bull Market Or Not?
Bitcoin’s demolition of the $4,200 USD barrier was welcome and important. In fact, optimism has affected the whole industry because of this.
Influencers like Anthony Pompliano are affirming that “Bitcoin is back” and declaring the end of the bear market, but it can be said that we are simply being too eager to believe in a bright future here.
Many people are simply angry with folks like Nouriel Roubini, which said that Bitcoin was a scam more than once. However, this is no reason to be foolish. This is the first day after the barrier has been broken and we will have to follow major developments in order to determine the future of crypto assets.
How to determine a bear market? There is no official metric to do it, but the general idea is that he stocks regain a big portion of their value back and then rise around at least 20% in a bear market.
When we look at how much money was lost for the whole crypto market last year, it is clear that we would have to wait at least a few months or weeks before we can declare the new bull run to be effectively happening.
However, something that we are definitely seeing right now is a considerable increase in the investors’ sentiment. There is a widespread feeling that the market will get better which it is starting to grow up, which is always a good metric for the emerge of a new bull run.
Some people like Joe DiPasquale, the CEO of BitBull Capital, argue that we are, unfortunately, still in the bear market. According to him, it is simply too early to declare otherwise. He believes that Bitcoin will pass $5,000 USD until the end of the year, but he is also the first one to be careful when crypto bulls affirm that we will see a marvelous spike in price.