Did the Bears Leave Bitcoin?

There is a constant struggle in any investment market between the bulls, a term associated with a rising market, and the bears, a term associated with a declining market. When bears flock to a market, it can mean one thing: it is on its way down. In these types of markets, it is hard to turn a profit. As a result, many bears engage in short selling. These types of markets are common with uncertain investments, such as cryptocurrency, since the average investor is typically concerned with loss. This can lead to further market volatility. For those who want to invest in Bitcoin, but are nervous about recent market rises and drops, bears can be a legitimate concern.

 

Are the Bears Still Here?

One of the biggest questions asked by informed cryptocurrency investors is whether or not the bears are still involved in the Bitcoin market. Thankfully, it appears that they have started to leave, helping ensure the market is ready for a comeback. Experts have noticed that 2018’s bear market resembles the one that existed around Bitcoin in 2014, when it was called the “worst currency of the year” by many media publications.

A big indicator that the bears have started to leave the market is its gradual rise in value. Bears can leave a significant mark on a currency, even long after they have left. For example, the bearish market in 2014 lasted almost the entire year. This time around, the market has already started to slowly rebound from their actions, with values rising somewhat since the beginning of 2018.

 

Can Bitcoin Overcome the Bears?

Even if the bears have, for the most part, left the market, evidence of their destructive work has been left behind. This type of evidence is typically called the “bear flag,” a trend of slow and then rapid volume decline. Recovery from this can be difficult, as it takes a while to rebuild your market performance to attract high volume buyers. In addition, trading volumes itself have declined since the bears first took over the currency. As a result, it could fall as low as $1,700 or even $1,500 USD.

The presence of a bear flag is also problematic when it comes to turning the market around. Bulls do not flock to the same investments that bears have recently decimated. As a result, these markets tend to rise slowly, making them susceptible to further “bear attacks” before they reach a healthy enough point to attract the bulls.

 

What to Do if There Are Still Bears?

Even if all the bears have not left the Bitcoin market, there are a few things you can do to protect your interest in the currency. First, make sure you remain calm. Prices do not typically fall in bear markets in a rational way. Worried and emotional sellers tend to send stock prices well below they’re worth during times like these. Waiting it out is often the most profitable answer. This involves simply sitting on the sidelines and observing the chaos. Arguably, this tactic requires a lot of patience, however, it often works out in the end.

 

Is the Market Safe?

Another fear held by many new to cryptocurrency investment relates to the safety of the market. After all, if a currency was subject to a bear attack once, what is to say it is not going to happen again. Thankfully, there are numerous indicators that this is not going to be the case with Bitcoin. Recent hacking attempts have left the market more resilient, and a growing number of governments are tabling legislation about it, giving it increased legitimacy.

While the market is definitely still seeing signs of the recent influx of bears, it is safe to say that Bitcoin is on an upward climb. Be cautions and keep a close eye on the market to be sure they do not return.

 

Featured Photo by Kevin on Unsplash