Beyond the fear that may be affecting all investors within the cryptocurrency market, it is worth asking the following question; has the winter period in the cryptocurrency market arrived, and are traders slowing down in prolonged bearish periods?
The two previous questions arise from the current convulsive scenario that dominates the cryptocurrency market, where many assume that we have entered a bearish period of prolonged projection that, according to experts, will probably last a couple of years.
While it is vitally important for anyone who buys and sells cryptocurrencies to understand market cycles and be prepared to trade in both sideways, bullish and bearish periods, paradoxically, in bearish areas, traders' trading activity decreases dramatically.
It is important to keep in mind that prolonged bearish periods have their interesting side, since beyond the obvious price collapse, bear markets yield multiple investment opportunities, this if we take into account that in these areas many weak projects end up going bankrupt, others depreciate, but the best ones become stronger and offer excellent buying opportunities.
For example, in the current bearish scenario one of the weak projects is represented by the USD and LUNA cryptocurrencies, this if we ponder that these projects fell sharply in recent days, an action that can somehow be linked to the beginning of what may be a new winter period within the cryptocurrency market.
It should be noted that after the collapse of USD and LUNA cryptocurrency prices, the market has continued to fall, which may be one of the reasons why traders are decreasing their trading activities.
I would like to know your opinion on this matter.
SOURCES CONSULTED
Washingtonpost This Crypto Winter Will Be Long, Cold and Harsh. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Bitcoinethereumnews
Before trying to make my opinion, its very important to review previous trends.
Bitcoin and cryptocurrencies has passed two bullies cycles. These are the 2013 and 2017 bullish cycles.
As historical date indicates, the price for bitcoin has reached pick in both cycles. However, once it reached that maximum price, the bearish period stars and the price for bitcoin and crypto continually declined at least by 85%.
Therefore, similar to the previous periods, It implies that the current bearish scenario will remain there and the price keeps declining at least by 85% in the coming three to five months.
Therefore, In my perspective, I encourage people to make trading small by small amount.
Thanks