Bears in the market have dominated the recent developments in the global economy. With Bitcoin price at $20,000, it is regarded as an inflation hedge is not holding up.
Also, Garry Gensler (FED Chairman) commented on viewing Bitcoin as a commodity. This news brought in a trail of positive sentiment in the crypto community.
As of now, Bitcoin Price is holding support at $20,000. All in all, Bitcoin is down by 2% in a day and 2% in a week too.
Likewise, other altcoins are also stuck near the critical support levels.
Ethereum has gained $1200 again and facing resistance at $1250 levels.
XRP is also trading at $0.35, marking a significant pivot.
While the only altcoins printing green percentages are Apecoin and Bittorrent, both of the coins have marked 12.5% and 11.2% gains in the past 24 hours.
Currently, Bitcoin is under the 200-day moving average. This makes it a strong support level as this has only happened for 3% of the Bitcoin lifecycle.
Will Clemente, a well-known crypto analyst, tweeted about Bitcoin being a very cheap asset. This can be well supported by the price action currently below the 200-day trend.
Also, notifying the current balance of Bitcoin on exchanges is eyeing a three-year low. Usually, such conditions denote fading selling pressure.
Increasing Retail Interest
Bitcoin on-exchange reserves are falling, and non-zero wallet addresses are printing all-time highs. With a new record of 42 million non-zero addresses, even the addresses with 1+ Bitcoin holdings saw a new ATH.
Recently in the latest post on glassnode, an average Bitcoin bear cycle lasts for about 260 to 410 days.
The current bear cycle started around November highs of $69,000. It can be visible that Bitcoin is reaching the first target of 260 days around mid-august 2022.
According to the historical price action, on average, Bitcoin price drops by 75% to 84% in the bear cycles. Recently, it dipped to $17,500, marking a 75% dip signaling that the bottom might be in.