Is there a next crypto bull run in 2022? Is the crypto bull run over 2021?
It is probably hard to predict that the next crypto bull is coming in 2022. One of the primary reasons is the current bull run is not yet over. Many analysts think we are at the beginning of a bear run now. This article breaks the myth at least the time it is written. The bull run of 2021 is not yet over. Suppose you’re interested in the world of stocks, cryptocurrency, real estate, any other type of asset market. In that case, you’ll see it described in two ways: either the term “bull market” or “bear market.” A bull market refers to rising demand, and the bear market is the opposite. Since markets are often subject to day-to-day (or even minute-to-moment) fluctuation, the two terms are usually reserved for:
- The more extended periods are more prone to upward or downward movements
- Substantial downward or upward volatility (20 percent is the generally accepted number)
What defines a bull market?
Bull markets, also known as bull run, are defined as when most buyers purchase. The demand is more significant than supply and market confidence is high, and prices are increasing. Generally, it lasts for three months, and the average length of a bear market is 289 days or about 9.6 months. This time, we are witnessing some different statistics. Suppose in a particular market. You observe price trends that are rapidly rising. In that case, it could indicate that investors are now positive and “bullish” about the price growing further. It could suggest that you’re at the beginning of a Bull market.
People who are convinced that their prices will rise over time are called “bulls.” As investor confidence increases, a positive feedback loop draws investors into more investments, causing prices to increase.
The price of a particular cryptocurrency is heavily dependent on the public’s confidence in the asset. Some investors employ it to assess the level of confidence investors have in a specific market (a measure referred to as “market sentiment”).
What is the final point of the bull market?
There are bound to be fluctuations in the form of dips, corrections, and dips in any bull market. It’s challenging to interpret small-scale downward movements as the conclusion of an uptrend. It is, therefore, crucial to look at any possible indications of a trend reverse by looking at the bigger picture, taking a look at price movements across more extended time frames. (Investors with a short time-frame frequently talk about “buying the dip.”)
It has been proven repeatedly that bull markets do not last forever. There is a point when confidence among investors is likely to begin to fall. That could be caused by negative news such as favorable legislation or unforeseen events like the COVID-19 pandemic. A rapid downwards trend could signal the process of a bear market. Investors are convinced that prices continue to decline in a downward downtrend as they sell to avoid further losses.
What is a bear market?
Bear markets are defined by the period when supply is higher than demand, the confidence level is low, and prices are dropping. The investors who believe that prices will fall for the foreseeable future are, thus, known as “bears.” Bear markets aren’t easy to trade into, particularly for new traders.
It’s complicated to know what time the bear market is likely to come to an end. And suppose the lowest price is attained. Rebounding is generally an inexplicably slow process that is affected by various external factors like investment psychology, economic growth, and world news and happenings.
However, they also offer opportunities. In the end, if your investment plan is more long-term, investing in the bear market could be a good investment when the cycle reverses itself. Investors using shorter-term strategies should also look out for short-term price increases or corrections. For more experienced investors, strategies such as short selling are a method to make a bet on whether the value of an asset will decrease in value. Another strategy that crypto investors use can be $ cost averaging. You’ll invest a certain amount (say $100) every week or monthly regardless of whether the value is on the rise or down. That spreads risk and lets you invest in bear and bull markets simultaneously.
What is the source of these “bull” and “bear” words come from?
As with many financial terms, their origins aren’t apparent. Most people think they are derived from how each animal fights: bulls push their horns up, and bears slash downwards using their claws.
The cryptocurrency market has been in an upward trend for a significant period of 2021 (no, it’s not about ignoring the crash in May). While it’s undoubtedly had inevitable dips, you can be sure that the Bull isn’t likely to end up in a fence anytime very soon. In the end, this surge had far exceeded expectations. It captivated a lot of attention when Bitcoin crossed its $50,000 threshold for the very first time.
You might be wondering why the current market is distinct from the previous. Due to numerous online trading platforms, it’s much easier for investors of all kinds, including institutional and retail, to profit from this. Additionally, the current Run isn’t likely to end soon and rage on higher expectations. So it is not easy to predict the next bull run soon.
Bull market vs. Bear market: The most important distinctions in cryptocurrencies
The main question most people are asking is how do you decide if you’re in a price that is either low or high? Although both are defined by the direction in which cryptocurrency prices move, there are some key distinctions that investors need to be aware of. The effect that bull or bear market movements influence cryptocurrency is typically similar to that of stocks.
In the case of cryptocurrency, the trends are different due to the vulnerability of crypto to market fluctuations. Because of this, crypto markets tend to move more quickly when trending bear markets or market bulls are established. The bear and bull markets are also easy to detect regarding stocks. However, this could not be so for crypto, as investors provide feedback to affect cryptocurrency in a different way than stocks.
Let’s say, for instance, that cryptocurrency markets are recovering from an economic downturn. In this case, investors will typically go into a bull mode when they reach the end of an economic downturn. Therefore, this can increase the price of crypto significantly faster. The bull markets of crypto tend to be more rapid than stocks, and they are also shorter-lived, lasting from just a few days and one month.
As it gets stronger, investors will gradually decline as they will likely be selling the currency and making withdrawals. Because of this, the bull and bear markets distinctly impact the crypto market compared to stocks because of their higher volatility and rapidity of exchange.
Why is the Bull run not yet over, and it may continue until mid-2022?
Crackdowns and Bans
A benefit disguised as a blessing? Experts’ announcement’s negative comment to stop accepting Bitcoin in a legally-valid form of currency to purchase goods. Recent Chinese crackdowns on Bitcoin mining have proved to be an assault on the cryptocurrency market. However, it may appear to be a blessing in disguise over the long haul. Although there are some critics regarding crypto, many long-term investors and countries (El Salvador) actively promote its increased acceptance. With increasing numbers of organizations and businesses seeking to accept and adopt cryptocurrency as a legitimate currency, One company’s backing-off could accelerate the process of getting other brands. China was the first to control 46% of world Bitcoin production before its miner’s ban in the first place. That provided other countries with the chance to establish their production facilities, which resulted in the more, quicker, and more efficient production of bitcoins and other altcoins.
With employment declining due to the pandemic, many people were looking at other income sources, and crypto proved to be an unexpected blessing in 2020. However, that doesn’t mean that this excitement will fade away. Since the recent reopening of cities and towns following an extensive lockdown, companies have begun to open. Consumer confidence is set to increase, as will the demand for more products. That is where cryptocurrency can come in, riding the rising confidence in business and consumers as well as the resulting market that COVID-induced lockdowns have slowed. According to the latest data available in India, crypto’s adoption is mainly driven by tier 2 or tier 3 cities, with Bhopal being the most significant in terms of growth among smaller cities with 100%.
Recently, El Salvador became the first nation to recognize bitcoin as a legal tender. The president offered as much as $30 worth of bitcoin to its citizens. In the same way, Panama is reportedly planning to follow in its footsteps. Several other countries are planning to develop their digital currency. As per Chainalysis’ 2021 Global Crypto Adoption Index, India ranks second in the adoption rate of cryptocurrency. In several countries, cryptocurrencies are increasingly considered an investment safe to protect against the effects of inflation and market volatility. Businesses are increasing their investment in the cryptocurrency sector. Many other companies are looking to accept cryptocurrency as a viable way to pay soon. The confidence of corporate executives is adding value to cryptocurrency, adding in this Bull Run.
Scarcity caused by Bitcoin reductions
Sometimes, there is a minimal supply of Bitcoin in the marketplace. It is caused by the halving that occurs every four years (a cut in the rewards generated from mining the valid blocks of Bitcoin by miners). That is an enormous demand for this currency. According to the basic economic principle, higher demand and less supply lead to higher asset prices.
The golden cross
A golden cross is a situation where an asset’s short-term average price conflicts with its long-term moving average. For Bitcoin, it happened in September. It also had another type of gold cross. A hash ribbon featured a cross between its 30-day moving average and 60-day moving average. In the past, this has shown an impressive increase in trading volume. Bitcoin’s Hash ribbon can be described as an indicator of the amount of computing power employed by the Bitcoin network during a particular time. As we have seen in the past, when this rate rises, it also increases crypto prices throughout the period. Therefore, it’s an indicator of the continuing trend of bulls.
Should you buy cryptocurrencies in a bear or a bull market?
Crypto traders typically purchase during bearish market times for the advantage of lower cryptocurrency prices. Therefore when bullish markets come into play with higher odds of earning a substantial profit.
There’s also a benefit to investing in the bull market. When you buy during a bull market, it can help to boost the market and, consequently, boost your profit as the market grows.
Both strategies are not without risk, just like all other trading strategies. The key is to be aware of the historical trends and the latest news about cryptocurrency. There’s a chance that you’ll encounter some bears and bulls when you’re investing in cryptocurrency, which is why it’s a good idea to invest in both.
What are the best ways to invest in the bull market?
If you’re investing in a bullish market, it is best to be aware of the market’s trend early and invest early. Then, you’ll be able to sell for more money just when the market has reached its high point. Bullish markets tend to last for an extended period so that the losses will be minor and only temporary.
What happens if things suddenly change? And you see the emergence of a bear market? In this scenario, the best option is to decrease your holdings, particularly those less well-tested crypto. It is possible to shift your portfolio temporarily to precious metals, cash, or similar investments. It is because they have greater odds of surviving a downturn.
They are also accessible at lower costs at the close of bullish markets. So keep an eye on them and make the most of the chance to increase your investment.
What can you do to invest in the event of a bear market?
The risk of investing in an area of a bear market is naturally higher since prices are lower and investors are not confident. So it is like Zero confidence in cryptocurrency. But, this risk is accompanied by the possibility of greater returns in the future. It would be best if you bought cryptocurrency at lower prices and then sold them at the height of the bull market that is coming up.
Another method that investors employ is to sell their holdings immediately after noticing downward trends. And then buy back the shares later at a lower cost as the market declines.
There’s no way to know how long a bearish market can last, mainly when a recession or similar circumstances trigger it. The problem is figuring out when the market will dip and the extent to which prices will fall. You may make a risky purchase or lose out on an investment opportunity.
Why are analysts saying that Crypto Bull Run is not yet over for Bitcoin and Ethereum and will continue till 2022?
The cryptocurrency market is back in record. Bitcoin has reached $66,000, and Ethereum is trading over $4700. So, it’s no surprise that price predictions have been reaffirmed. With the overall market cap of cryptocurrency now soaring towards $3 trillion and rising, the bulls are in charge.
Hindsight Is 20/20
The famous tech analyst Adrian Zdunczyk, also known under the handle Crypto Birb in Twitter, never stopped working to the bull market. Crypto Birb is also the institutional trade group The Birb Nest. It recently informed those following him that he correctly predicted that bitcoin would hit a record high in the months before it ever reached $66,000 in October.
In the summer, panic had been a significant factor in the market, which led to investors selling BTC at $30,000 in anticipation of the bottom crashing out. Crypto Birb’s bullish stance was right on the mark in the past, and he is now eyeing bitcoin’s $80,000 price, saying this price can be “imminent.”
In a market report, he employs chart pattern analysis. He cites the lower and upper Bollinger Bands to conclude bullish research, even though any falsehoods in the news cycle may push prices to lower.
Ethereum is trading at record levels and has surpassed the $4,700 mark on Sunday. Crypto Birb believes Ethereum has more significant potential for gains and recently added an optimistic price target of $20,000 on the second-largest cryptocurrency. The forecast is expected to be realized within the next couple of months. If it’s true, the value of Ethereum will rise by around 325% by the time 2022 gets underway.
Ethereum has already seen a rise of 525% in the year. Also, NFT and DeFi markets have been exploding. Ethereum is currently moving into Eth 2.0, which is designed to increase the scale of the network and lead to lower costs, leading to more possible gains. Ethereum is facing tough competition from new blockchains such as Solana. A record-setting high recently surpassed their prices.
While this was happening, Gemini co-founder Tyler Winklevoss was elated by Ethereum’s record-breaking high by declaring, “Eth is money.”
Analyst on the blockchain Matthew Hyland also predicts that Ethereum’s market isn’t ending. Hyland has recently tweeted the following tweet “Ethereum is just getting started,” with the possibility of an “extreme move” to the $14,000 or more level and comparing it with the market of 2017. So next, the bull run continues. Happy new year, investors.