Many encryption traders are wondering now – has the bull market really ended? Why the encryption market is slow recently? When you look at the extent that it keeps from some altcoins from its highest levels ever, you will notice that these are the bear market numbers. For example, the Pepe Meme currency decreased by 75 % of ATH while Solana decreased about 60 %.
During the bear market, Altcoins usually decrease by 80 to 90 % of ATH, so we haven’t got there yet, but we get there if this performance continues in the market.
The CEO of Crypto Quant, Ki Young Ju weighs the situation.
The maximum achieved for the maximum market
Ki Young JU believes that the Bitcoin Bull course has ended, and that this analysis is based on a key scale on the series called CAP investigator. This Bitcoin concept, which enters Blockchain, is treated as “buying” and bitcoin leaves as “sale”. This allows analysts to estimate the average cost of each portfolio.
When this basis strikes the cost as the holding BTC, you get the total maximum achieved. Many experts consider that this number represents the actual capital that entered the Bitcoin market through the activity on the chain can be verified.
This is significantly different from the maximum market, which is calculated based on the last price trading price. The common wrong belief is that when someone buys $ 10 of bitcoin, the maximum market increases only with this amount. In fact, the prices are determined by the balance between the purchase and the sale of pressure in request books.
During low pressure periods for sale, even small purchases can pay the price – and thus the maximum market – much higher. Companies such as Microstrategy have benefited from this dynamic by issuing convertible bonds to buy Bitcoin, which led to paper gains that exceeded their actual investments.
Bear market signals
The relationship between CAP and CAP provides the market with a decisive insight into market conditions. When the achieved CAP grows, the maximum market is still stagnant or decreased, it indicates that the money flows to the market without increasing the corresponding prices – a classic market index.
On the contrary, when Bitcoin Cover Investigators It remains flat during the high level of the market, indicating that the minimum new capital pays prices up – an upward mark.
Currently, we are witnessing the previous scenario. The capital continues to enter the market, but prices do not respond proportional. This style usually distinguishes bear markets.
While some critics argue that the data on the chain has restrictions in capturing all capital flows, most large movements are reflected on the series, including exchange activities, custody portfolio transactions, and European Union operations.
In essence, when small amounts of capital can increase prices upward, we are on the upward market. When the large capital fails to raise prices, we are in the bear area. Current data points clearly to the last position.
Although the pressure pressure can be reduced at any moment, historical patterns indicate that the meaning of the meaning of the market usually requires at least six months to develop it, which makes a short -term gathering unlikely according to the Ki Young JU analysis.
Also read: While Bitcoin sleeps, Kaspa is preparing for the final return
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