The debate about whether the Bitcoin bull market is over due to the recent correction is in full swing, and many are already looking for the bottom of the current downtrend.
The bulls now need to be careful not to act rashly as the reset buying on Bitcoin has worked so well in recent months. Because the bears may have just taken control of Bitcoin, as a trend strength measurement indicator shows.
The possible end of the bull market
The Bitcoin price has fallen by more than 50% after a deep slump last month – leaving it with the worst monthly candles of all time.
After such a steep correction and the last bull market that never allowed more than a 37% retracement, more traders are looking for a bottom to buy Bitcoin – than a bounce to shorten.
The idea that the bull market will start up again soon could lead to losses and the painful realization that this cycle is very different this time. At least that’s what the Average Directional Index suggests. This suggests that the bears have just regained control of Bitcoin and are unlikely to give up anytime soon.
Have the bears taken control of Bitcoin?
The weekly Bitcoin price chart above shows the many times the bears have taken over the cryptocurrency trend, according to the trend strength measurement indicator.
Bullish impulses are always strongest, which makes the average directional index rise even to the highest levels in history. However, the Directional Movement Index indicators that work with the ADX indicate when bears or bulls are in control of the trend.
In this case, the bears have just taken control of Bitcoin – after a whole year. So while bulls expect an immediate return to highs, a correction lasting less than three months doesn’t make much sense compared to the length of past bear phases.
Instead, with each passing bear phase, the subsequent bullish impulse becomes stronger. That, in turn, suggests that when the bulls finally take back control, the bears will be virtually eliminated – allowing the cryptocurrency to climb to the all-time highs investors have been expecting. Say: about $ 100,000 per coin or higher.
The fact that the bears are currently winning the battle does not mean that they are also in control in the medium and long term. Even during past bear phases, the bulls temporarily regained the upper hand and provided an upswing. Until the current bear phase is over, the right way might be to shorten those bounces – and buy the Bitcoin price reset later when the new uptrend is similarly confirmed via the ADX.
Text evidence: Newsbtc
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