Bitcoin and other crypto lovers and investors are afraid of the cold feeling that heralds the beginning of crypto winter. However, while crypto prices may fall, they may even be positive for investors. Buyers and speculators can get more losses for their money when cryptocurrencies fall short of buying low; While with a high selling strategy. However, it is worth noting that there are early signs of weather change. The bear and the price collapse are already operating in the market. If the crypto winter comes, the following call change is a drop in trade. The first sign that cryptocurrencies are on the way is the bear market. The bear market is when crypto prices fall by at least 20 percent over a sustainable period. Usually, this happens for at least two months.
Bitcoin, the world’s most popular digital currency, peaked in November last year. This currency is about half of the crypto market capital, $1.65 trillion. It currently trades at a 53 percent discount. Other common factors are seen in the bear market; investors have a bad mood and the economy’s weakness.
Last Crypto Winter
The bear market has twice before seized the icy power of crypto. That was in 2017 and last year. In 2017, the price of Bitcoin reached $19,114. Investors were excited. However, then BTC values dropped to $3256 in 2018. False expectations of prolonged value growth continued until almost September 2020; When Bitcoin finally grew. Around this time, Bitcoin reached the $10,000 mark. The most popular currency openings for April 2021 were $58,793; However, they dropped almost instantly to $29,807. Another crypto price explosion took place in November last year, and the currency rose to $66,971. Bitcoin has since suffered a setback, and today, its low rate is palpable.
Crypto Winter and Investors
Everything has a positive side. Cryptocurrency gives hope to many investors. They are buying at the bottom for selling at a profit when the price rises are one of the most commonly used methods. That means buying low, selling high – investors buy cryptocurrencies at market prices; Hold them until the markets rise. However, this strategy is not as simple as it seems at first glance. Market peaks and bottoms are pretty challenging. They include both behavioral and emotional psychology. Experienced traders will find more solid evidence. These are business sentiment, moving average indicators, crypto price cycle movement. The moving average is based on historical data from cryptocurrencies. The moving average shows the rise and fall of commodity prices over time.
A common approach is to view graphs of the 50 and 200-day moving average. When the lines intersect, investors buy, and when they cross again, they sell. Experienced investors look for moments when fear or greed dominates the crypto market. Fear means buying, while desire means selling. These are the points where prices fall and flow to the lowest and highest levels. Some experts still hope that the crypto winter will not stand so cold and harsh that it will be challenging to live up to 2022 expectations.