The 2 issues most cryptocurrency traders are pondering are how a lot decrease can bitcoin go and the way for much longer this bear market may final.
The value ache facet has been mentioned broadly, however the time-based dimension is one other query in itself.
Value ache refers to sharp drawdowns or volatility that pressure members out of positions, whereas time ache displays sluggish, range-bound situations that exhaust each bulls and bears by lack of course.
Bitcoin is at the moment buying and selling beneath $66,000, down over 3% prior to now 24 hours and roughly 45% beneath its October all-time excessive, an virtually six-month bear market.
One indicator pointing towards continued time ache is the Realized Cap HODL Waves from Glassnode. This metric teams bitcoin provide by the final time cash moved, with every band representing totally different holding durations, and weights them by realized worth, the typical worth at which cash final transacted on chain.
Traditionally, bear market bottoms have coincided with long-term holders, these holding for six months or extra, controlling a minimum of 85% of provide. Usually, worth bottoms kind first, and solely a number of months later does long-term holder provide method these excessive ranges, indicating these traders purchased at depressed costs and held by the bear market.
At present, long run holders account for about 80% of provide. If this development continues, the market could also be nearing a bottoming part, although a number of months of consolidation are seemingly nonetheless forward.