First of all, I want to preface this by saying I am by no means an expert trader in stocks or crypto or a financial advisor. This is also my first analysis, so please be gentle.
I think what we are witnessing in the crypto environment is most certainly not a bear market. In my personal opinion, to think crypto is a bull/bear market is flawed by default, as we have seen time and time again, that even though there are certain similarities with stocks, cryptos are NOT a stock and do not abide by the same principles at all.
With more and more inexperienced people coming into the crypto world, an powerful bullish run was triggered, and thus everything pumped. However, such great numbers of new investors looking to get rich quick comes with uncertainty. With the Elon Musk tweets and rumours of China banning crypto, it was a sufficient fuse to trigger a massive sell-off. Do not be fooled into thinking this could lead into a multi-year "bear market", though. As I have said, crypto doesn't abide by the same rules as the stock market. Such a great drop in such a short time is by no means a sign of a prolonged bleeding, but a correction to the massive mainstream pumping of crypto. Yes, we dropped a long way, but in my opinion, this was because of widespread panic. If a stock were to drop 50%, a lot of trust in the respective company would drop and this would have real world repercussions. With crypto however, I don't think this is true. Most people's opinions haven't truly changed. Crypto is still regarded as being the future and this widespread panic brought ETH and BTC back into the limelight of mainstream media. People know there were -50% drops before and they know the safer coins bounced right back up and broke ATH's. This time around, compared to 2017, considerably less people think this is the end, and this will motivate a lot more people to try to "buy the dip" in hopes that it will once again bounce harder than ever. Will it bounce as hard as last time? Who knows, but it will definitely bounce close to previous highs.
Looking at ETHUSD more specifically, a bullish trendline is clearly forming, and with previous drops from 3000 -> 2500 -> 2000 being very sudden and violent, I think that once resistance at each of those levels is beaten, violent and quick jumps are inevitable. One of those already happened, with ETH jumping from <2000 to 2500 currently in a matter of hours. I think it will keep lingering at resistance, but once it is beaten, expect leaps.
I think what we are witnessing in the crypto environment is most certainly not a bear market. In my personal opinion, to think crypto is a bull/bear market is flawed by default, as we have seen time and time again, that even though there are certain similarities with stocks, cryptos are NOT a stock and do not abide by the same principles at all.
With more and more inexperienced people coming into the crypto world, an powerful bullish run was triggered, and thus everything pumped. However, such great numbers of new investors looking to get rich quick comes with uncertainty. With the Elon Musk tweets and rumours of China banning crypto, it was a sufficient fuse to trigger a massive sell-off. Do not be fooled into thinking this could lead into a multi-year "bear market", though. As I have said, crypto doesn't abide by the same rules as the stock market. Such a great drop in such a short time is by no means a sign of a prolonged bleeding, but a correction to the massive mainstream pumping of crypto. Yes, we dropped a long way, but in my opinion, this was because of widespread panic. If a stock were to drop 50%, a lot of trust in the respective company would drop and this would have real world repercussions. With crypto however, I don't think this is true. Most people's opinions haven't truly changed. Crypto is still regarded as being the future and this widespread panic brought ETH and BTC back into the limelight of mainstream media. People know there were -50% drops before and they know the safer coins bounced right back up and broke ATH's. This time around, compared to 2017, considerably less people think this is the end, and this will motivate a lot more people to try to "buy the dip" in hopes that it will once again bounce harder than ever. Will it bounce as hard as last time? Who knows, but it will definitely bounce close to previous highs.
Looking at ETHUSD more specifically, a bullish trendline is clearly forming, and with previous drops from 3000 -> 2500 -> 2000 being very sudden and violent, I think that once resistance at each of those levels is beaten, violent and quick jumps are inevitable. One of those already happened, with ETH jumping from <2000 to 2500 currently in a matter of hours. I think it will keep lingering at resistance, but once it is beaten, expect leaps.
