70% of people think that Bitcoin could become bullish in 12 months. Why? Let’s shed some light on the current bear market and when it will end with famous Investor crypto expert Lark Davis.
A Polish Opinion!
While the entire cryptocurrency market is gripped by a bearish run for more than two months, investors are hopeful that this may not last more than a year. In a poll by Lark Davis, a cryptocurrency expert, on his Twitter handle, more than 70% of people expressed that this bear run in the market is going to end in almost 12 months.
However, 30% of people are still bearish about it and they believe that the market could continue to behave the same way for more than two years.
Deep Correlation Between Nasdaq and the Equity Market
Lark Davis tried to simplify the math of the market for investors. Highlighting a deep correlation between Nasdaq, the equity market, and the crypto market, he predicted that this bear run could last for at least 12 months.
According to Lark, Nasdaq’s behavior depends a lot on the technological firms, while the same is the case with crypto. So, if the Nasdaq is going to get up, the crypto will too, or if otherwise happens, then the crypto will follow the same. These days Nasdaq is also on a bear run and that is being reflected in the crypto market too.
When Can Traders Expect Next Bull Run?
Though there is a hope of this chaotic atmosphere in the crypto markets to end soon, a chart presented by Lark shows that this is not the first bearish run in the crypto market. There have already been two bear runs since 2014 and each of them lasted for at least two years before the market hit an all-time high again. Investors can be hopeful for the same again once the market hits the bottom.
Drawing a Link Between Recession and Crypto Prices
Lark stated that the way the market has been falling, there could be a small recession period waiting, and there will be a boom in the market again after that. He made it clear that recessions happen because the market is already damaged inside, and once that period is over, investors can gain double digits.
Lark determined that achieving future gains in the crypto market will require patience and a long-term investment strategy.
BTC may have already reached its “pain threshold.”
The technicals, on the other hand, suggest a slight uptick, with the RSI steadily undergoing a positive divergence. Despite this, the MACD is about to flash a big buy signal as the selling volume appears to be easing. Furthermore, as traders accumulated at the discounted price, the number of addresses holding 1 Bitcoin has also reached a peak. As a result, BTC prices are projected to remain below $45,000 for some time before the next surge.
Despite this according to crypto expert Lark Davis, Bitcoin has been closely following Wall Street’s Nasdaq 100 index as mentioned in his tweet. He clarified that if the Nasdaq continues to correct, which is more likely, Bitcoin could be in pain again. Nasdaq has already reversed 28 percent from its high.
As predicted earlier it plummeted below 12,100 on Tuesday. As a result, both Wall Street and Bitcoin may bleed more. Whereas the next support level will be at $22,000 if the BTC price falls below $28,000. This indicates that altcoins may face further difficulties in the future.
Final thoughts
Davis finished by adding that, while there is currently a bloodbath in the financial world, predicting the exact bear bottom is very difficult. People should be extra cautious with their money as a result of this.
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Source: https://coinpedia.org/opinion/traders-have-to-wait-for-2-more-years/