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Binance Reports Cryptocurrency Price Trends Are Signalling the End of Bear Market

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Tue, 16/04/2019 - 11:19
Binance Reports Cryptocurrency Price Trends Are Signalling the End of Bear Market
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The cryptocurrency spring has been slowing gaining momentum through 2019, and many have been wondering if this is a true turnaround in fortunes and the beginning of a bull market, or if it is just a small reprieve.

According to research done by Binance, the good news is that there are a few price indicators suggesting that indeed the bear market could be over. The major cryptocurrency exchange has published some information that shows correlation to the last time a bear market ended.

Trends and indicators

Among the trends that Binance has noted are correlations between Bitcoin and altcoin prices. The data from 2014-2019 confirms that the 90 days to mid-March represented the longest period of high correlation in market history.

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According to historical behavior, such periods tend to trigger trend reversals. The 90 days to mid-March incorporated Bitcoin’s drop from $6,500 to around $3,100, leading the exchange to suggest that markets could now rebound following the end of the record correlation period.

This rebounding would thus usher in a bullish market, while the correlation and the end of the price falling that has been seen in the cryptocurrency spring thus far is indicative of the bear market quelling.

A growth in institutional interest

It has also long been held that the growth and adoption of crypto by institutionalized investors will help aid the market and usher in new growth. The hopes were that a Bitcoin ETF would push this along, but even without that, Binance is noting solid uptake from institutionalised investors.

An estimated 7 percent of the crypto assets are held by institutional investors, according to Binance, which is almost one-thirteenth of the institutional holdings proportion for the U.S. stock market.

More institutionalised interest in crypto not only shows that there is new adoption, it also shows that the adoption is far more thought-out and a lot less speculative so that the resulting bull market should be a lot more dependable.

Link to image source: https://images.unsplash.com/photo-1534210923090-1753941b737c?ixlib=rb-1.2.1&ixid=eyJhcHBfaWQiOjEyMDd9&auto=format&fit=crop&w=334&q=80

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