TMCnet Feature
January 26, 2021

Bitcoin Prices Fall 20% After Peaking - Are We Witnessing A Bearish Market Trend?



Recent Bitcoin News

After peaking during last week, the digital currencies have fallen sharply on the indexes on Monday, where bitcoin, the leading cryptocurrency has seen a sharp fall of greater than 15%, hitting the lowest point in the last one week. According to some market traders and analysts, the non-income paying assets are being affected by the rapidly increasing U.S. yields. However, other analysts, especially the skeptical ones, who had already said that the prices will subsequently fall, have been reemphasizing on the uncertainty in cryptocurrency, and identifying this decline in prices as anticipated.



On January 10, Bitcoin was spotted trading at 33850, fallen by 14.35% or 5670 units.

Comments on Cryptocurrency Market

We don’t analyze Bitcoin on a daily basis, but given it is a rival asset to the stocks and bonds etcetera in the financial markets, we are certainly cognizant of the trends of price in the cryptocurrency market. Hence we are not aloof of it, and certainly possess a right to comment on the market.

We have been publishing articles on cryptocurrencies and especially about bitcoins, but our articles are not just based on mere assumptions and conjectures, but rather deep investigation and well-informed research. trade with the yuanpay group to know more about this.

One of our central belief is that the details and technicalities come before the fundamentals, and that is why we do not just comment on the price fluctuations or identify the main overlying reasons, but we prefer investigating upon those price spikes and find reasons behind them which explain those trends in detail and those explanations could then be of actual help to the investors.

What really surprised me about Bitcoin wasn’t the price action, but the lack of really good technical and fundamental analysis. I acknowledge that I’ve seen the articles on halving and mining, and such, but I’m confused by most of the analysis.

We did go through a few analysis and comments of some crypto experts, who were either long term investors or short term investors or traders.  We reckon that almost all the crypto market analysts project some percentage retracement lines on a graph and begin to think of themselves as being of an immense help to the investors. However, in reality, only a few of these strategists and analysts are writing valuable analysis, backed by solid evidence and research, which would actually guide the investors.

We noticed that before the recent surge in the bitcoin prices, which occurred from roughly $12,000 to $42,700, generally just a few articles got published on the subject. However, soon after the price trends began to surge and take leaps of thousands of dollars per day and the $20,000 level was crossed, hundreds of articles were then published. Also the mandatory $100,000 ones.

Putting all of this in front of us, what we determine is that the crypto market analysts prefer the momentum in the market price trends when they are on the upside. However, they tend to be quieter when it comes to the downside. Who wouldn’t want to make random conjectures and uninformed target price guesses, when the market volatility is positive.

A Final Word

During the morning session of Monday, Bitcoin has fallen down by a great margin i.e. greater than 20% from the top. The real question that is posed to the market analysts is whether the market is witnessing a bearish trend. What we have noticed is that as the price trends go upwards and in a positive direction, market analysts began to perform technical analysis, trying to explain the upside. On the contrary, there is no analysis or trend following the ‘bearish trends’ – if analysts are confident enough to call it that. We believe that the analysts should be courageous enough to call this a bear market as we witness a decline in prices greater than 20%. Perhaps the real figure is not 20%, but rather even greater i.e. 30% or even 40%.

What we are trying to say is that it is a lot easier to make comments and claims about the rise in bitcoin prices. It’s convenient to make the price predictions when the market is soaring, but what takes courage and conviction is to analyze and highlight the underlying causes and consequences during the decline, when investors need an expert analysis and opinion the most.

Is technical analysis on bitcoins even applicable for given it is thought to be that distinctive of a financial instrument?

Of course we don’t know the definite answer ourselves, but if we would make a sound prediction, a price ranging from $24203 to $19830 would certainly be a valuable point to begin searching for value.

Statements like Bear Market or Bull Market do not make much a difference. What does, however make a difference is a well-researched analysis when the cryptocurrency market is on the downside, and not just mere conjectures.

 

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