The crypto market is currently in a period of uncertainty, stuck between optimism and indifference. Despite overall negative sentiment, optimism is rising for Bitcoin and other major cryptocurrencies. Some experts believe that the market may not enter a long-term bear market as some indicators show the persistence of long-term investors.
The data shows that long-term holders of Bitcoin remain confident in their holdings, reducing doubts that a bear market is imminent.
The Net Realized Profit/Loss (NUPL) measure, which shows whether investors are making a profit or a loss, has recently fallen. A decrease in this measure can indicate that the market is approaching a downward phase. According to the past statistics of the crypto market, significant reductions in NUPL have usually been accompanied by further price reductions.
The crypto market has experienced several bear markets so far, one of the worst of which occurred in 2022. That downturn followed the collapse of FTX, a major cryptocurrency exchange, which led to a chain reaction that affected hedge funds and lending platforms.
There are many rumors that the market may enter another bearish phase. Many cryptocurrencies have struggled since Bitcoin peaked, raising concerns that the market may be entering an extended period of bearishness. The current market stabilization and occasional false breakouts have heightened these concerns, as they closely resemble the early stages of previous bear markets.
A market cycle psychology chart gives us a view of the likely direction of the market. This chart shows the different stages of a market cycle, from the disbelief at the end of a bear market to the euphoria before the downturn that indicates a bear market.
Not everyone agrees that the crypto market will go down. Despite the poor performance of some altcoins, especially Ethereum, many Bitcoin holders remain confident in their holdings, which is a sign of stabilization and a bullish market.
Market users also closely monitor Bitcoin news and the activities of crypto whales, especially large Bitcoin holders. Although some have stopped buying, this is not unusual during a bullish cycle.
Finally, the crypto market is at a tipping point. While there are signs of a possible slowdown, there is also evidence of resistance from long-term holders. The coming months will be crucial in determining whether the market can stay on its current path or sink into an extended bearish phase. Investors should be alert and follow key indicators carefully.