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Here's Exact Point of Bitcoin Switching from Bear to Bull Market

Wed, 06/29/2022 - 10:35
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Arman Shirinyan
After crossing this threshold, Bitcoin will most likely enter bull market, but it is not clear when it is going to happen
Here's Exact Point of Bitcoin Switching from Bear to Bull Market
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There are tons of tools and indicators that can help you ‌determine whether an asset is moving in a down or uptrend, including moving averages, indexes and other technical instruments. But investors mostly use market data like the cost basis average, which reflects the average cost of an asset held.

The short-term holder cost basis used by lead blockware analyst Will Clemente is an "excellent" bearish sign of the current downtrend, according to the analyst. Clemente believes that the indicator can help us to determine the current momentum on the market.

Whenever an asset crosses the SHCB line from above, the market's momentum switches to bearish, and when an asset recovers and crosses the SHCB line from below, the market enters a bullish movement phase.

The indicator reflects the average cost of Bitcoin held on addresses of short-term investors and traders that entered the asset a relatively short time ago. Whenever an asset moves below it, short-term holders hold funds at a loss.

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If the price crosses the SHCB line after falling below it, we should note that the market has enough power to push the asset's price above the "breakeven selling pressure" that the market faces whenever short and mid-term holders are seeing the possibility of breaking even on a previously unprofitable position.

As of now, Bitcoin is struggling to show almost any kind of upward volatility and has been struggling in the $20,000-$21,000 range for the last 10 days because of the lack of inflows to the market.

At press time, Bitcoin is changing hands at $20,000 and has lost 1.1% of its value in the last 24 hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.