debate around If the bitcoin bull market is over The recent correction has come to a complete boil, while many are already looking for the bottom of the current downtrend.
Buying the dip that has worked so well over the past several months requires the Bulls to be careful not to jump the gun. According to the Trend Strength Measurement Indicator, as bears have just taken control of Bitcoin.
Analysis of the crypto correction and possible end of the bull market
The price of bitcoin is down by more than 50% after a massive drop in the past month – among Worst monthly candles on record left behind.
After such a sharp correction and the previous bull market never allowing a more than 37% retracement, more traders are looking for a bottom to buy instead of a lower bounce.
Related Reading | Two Paths to a Bitcoin Bull Run, and If a Bear Phase Is Next
idea the bull market will come back so soon There can be loss and a painful realization that this cycle is very different this time around. This is in line with the Average Directional Index, which suggests that the bears have just gained control of Bitcoin, and likely won’t give up anytime soon.
The Average Directional Index shows where bears took over | Source: BTCUSD on TradingView.com
Average Directional Index Says Bears Are Now Over Bitcoin
The weekly bitcoin price chart above shows that the cryptocurrency trend has been taken over by bears at times, according to the Trend Strength Measurement Indicator.
Bullish impulses are always the strongest, sending Average Directional Index itself rising to the highest readings historically. However, the Directional Movement Index indicator that works with the ADX indicates when the bears or bulls are in control of the trend.
Related Reading | Market Timing: Why Bitcoin Could Fall Before the Rise
In this case, the bears have taken over bitcoin after a full year. So while the bulls are expecting an immediate bounce back to higher levels, anything improved in less than three months doesn’t mean much compared to the length of the past Bear step
Instead, with each passing Bear phase, the following bullish impulse turns stronger, suggesting that the bears will be eliminated when the bulls finally regain control, but Allows cryptocurrency to grow To the all-time high that investors are expecting – around $100,000 per . at over coin or higher.
Bears are currently winning the battle, that doesn’t mean they are fully in charge for the long term. even during the past Bear In stages, the bull gained the upper hand due to a number of bounces. to the present Bear The phase is over, if the right way to go is to remove those bounces, and leave buying dips for later when the new uptrend is confirmed through ADX in a similar fashion.
Featured image from iStockPhotos, Charts from TradingView.com