Bitcoin’s price may be ‘holding up well,’ but the big picture is this

It has not been a good year for the world's largest coin. When the price of BTC was close to $69,000 on the charts, many expected it to hit $100k soon. That didn't happen. In fact, there was a decline and a decline in the value of the currency. Did so much.

The last few days have seen the price of BTC recover from a low of $32,000, but it's still not close to where it was a few months ago.

This has led to a big question in the minds of many, is the winter here? After a bullish 2021, is the Bitcoin ice age upon us?

A series of red candlesticks can be seen on the monthly frame. It might be too early to call anything. The market and the community are not known for their cold rationality.

A cold reception.

Consider the latest data from the internet search engine. Search interest for the term 'Bitcoin Winter' climbed to 100 last week after flashing a reading of 7 between 7 and 13 November. A lot of people want to know if it is here or not.

There is a link to the Google Trends.

That isn't the only thing. The Fear and Greed Index is not giving a lot of confidence with a reading of 44. Over the last 30 days, the scale has moved from Extreme Fear to Fear.

The fact that most are revising their initial predictions can be supported by the aforementioned datasets. Some are suggesting there may be tougher times ahead.

According to the Huobi Research Institute, the asset is very sensitive to changes in liquidity. The report said that with the Federal Reserve's policies contributing to a fall in the same, it will face a bear market.

There are some signs to indicate a bear market for Bitcoin, according to one of Glassnode's latest newsletters.

A different position.

The phrase is hard to define. There is no consensus as to what is a bear market for the digital currency.

Consider the views of Jan Wstenfeld. The analyst of Quantum Economics believes differently than others.

This cycle has been small and brief compared to previous bear markets.

Wstenfeld claimed that the drawdowns are more like mid-cycle corrections. He concluded.

If that is how the bear market looks like, I take it.

You can find it here:

There are other metrics that seem to support the idea that winter might be a better time for the currency. They agree with Wstenfeld that the last 12 weeks are just mid-cycle corrections.

After almost 80 days of capitulating, the metric is finally above 1 on the charts. This means that investors are making money on the transaction. The last time the STH SOPR capitulated was for 74 days.

This is the source of CryptoQuant.

The EMA7 split the EMA21 on the charts recently. This has preceded bull rallies on the charts.

Is there a right or wrong?

It is worth pointing out that the metrics don't show that it is not a bear market. The whale exchange ratio has been above 85% since the beginning of the year.

This means that there is no right answer. It could be a correction or a big drawdown. The situation is still quick to change.

Who knows? Maybe the Fed will raise interest rates, maybe Russia will invade Ukraine, or maybe Musk will once again use the internet. No one knows. The best course of action is to look out.

While it is holding up, no one can really say what will happen when the rate hike by the FED actually takes place in March or if they do an emergency rate hike in the coming weeks.
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Jan Wstenfeld wrote on February 12, 2022.

Source: ambcrypto.com