Is it already a bear market? Listen to what the Twitter KOLs are saying

Is the cryptocurrency space led by Bitcoin entering a real bear market? KOLs on Twitter are divided in their opinions.

On June 22, Bitcoin fell below the $30,000 mark again, dropping over 11% in 24 hours and 10,000 knives in a week.

According to incomplete statistics, more than $25 million of the DeFi protocol was liquidated in the past 24 hours, as much as seven times the previous day.

Is it already a bear market? Listen to what the Twitter KOLs are saying

With the tightening of domestic regulatory policies and the global economic climate, Bitcoin’s market performance has repeatedly hit a number of “believers”. So, is the cryptocurrency space led by Bitcoin entering a real bear market? KOLs on Twitter have mixed views.

PlanB, who has been a firm believer since the last bull market, says that neither Musk’s previous negative tweets nor China’s negative policies are the root cause of the month-long pullback. He still believes the bull market is continuing and that this is just a healthy market pullback.

Is it already a bear market? Listen to what the Twitter KOLs are saying

And based on his ever-promoting S2F (Stock-to-flow) model, he judges that Bitcoin will see a surge in the fourth quarter of 2021, eventually reaching $135,000.

The S2F model assumes that scarcity of bitcoin drives price growth, with the ratio defined as the ratio of current inventory to new production value of the commodity. While the ratio has been criticized in many ways, Bitcoin’s price has historically obeyed the S2F ratio, which is one of the reasons why many analysts still subscribe to the model.

Also long term bearish is Larry Cermak, director of research at The block, who says that although its not a trader and can’t tell if it is currently in a bear market, the current general trend in the crypto space is correct and DeFi is set to flourish.

Is it already a bear market? Listen to what the Twitter KOLs are saying

Quantitative analyst Willy Woo, on the other hand, dumped the data straight away saying that according to the Spent Output Profit Ratio (SOPR) provided by Glassnode, Bitcoin is indeed entering a period of pullback and it is also the time to bottom out (Buy the dip).

The SOPR metric is a measure of Bitcoin’s overall profit or loss. A ratio of 1 indicates that the panicky people (Weak Hands) have exited the market, which means there is a clear upside signal. This indicator suggests that selling at a price lower than the current bitcoin price could mean a loss on the books, and therefore few investors are willing to accept such a price.

Is it already a bear market? Listen to what the Twitter KOLs are saying

Analyst Lark Davis also charted that the market will never reach a bullish peak without reaching the hot zone on the chart below, looking at the 200-week average.

Is it already a bear market? Listen to what the Twitter KOLs are saying

Analysts John Wick and William Clement gave the current Relative Strength Index (RSI) to support their view that the indicator is still the best indicator to judge the current bull market.

It is understood that the Relative Strength Index RSI is a technical curve based on the ratio of the sum of up points and down points in a certain period of time, which can reflect the prosperity of the market in a certain period of time.

Is it already a bear market? Listen to what the Twitter KOLs are saying
Is it already a bear market? Listen to what the Twitter KOLs are saying

Li Qiyuan tweeted that he still stands by his view that bitcoin will see a double top this year, as it did in 2013, the first in April and the second in December. His twin brother, “King of the Tops,” Li Qiwei, also said in a recent interview that the market is still in a bull market and that it’s just a big pullback.

Is it already a bear market? Listen to what the Twitter KOLs are saying

It’s worth noting that since the bull market opened in 2020, there have been few, if any, bearish voices overseas so far, and even if there were, it would only be the short-term panic of a major market dive.

On the contrary, some domestic KOLs have been relatively pessimistic due to the tightening of domestic regulatory policies on bitcoin mining and trading.

For example, Dovey Wan has recently been frequently updating about domestic regulatory actions and analysis, and she holds a seriously pessimistic attitude towards this regulatory shortfall in the short term, but is bullish in the long term.

Is it already a bear market? Listen to what the Twitter KOLs are saying
Is it already a bear market? Listen to what the Twitter KOLs are saying

Jiang Zhuoer also said that the current round of bull market did not see the top, out of a never-before-seen arc top, may go short bear, may also go similar to the 2013 double top pattern.

Is it already a bear market? Listen to what the Twitter KOLs are saying

Our crypto netizen Miss Molly, on the other hand, can’t find her way north at all, but like us, she certainly hopes the second half of the bull market continues.

Is it already a bear market? Listen to what the Twitter KOLs are saying
Is it already a bear market? Listen to what the Twitter KOLs are saying

Yearn’s core developer banteg also expressed his thoughts on the volatility of the market in recent weeks. He laughed at himself, “Whether it’s a bull market or a bear market, we’ve been developing as slow as crabs.” Andre Cronje, founder of Yearn, was also the first to like the tweet after it was sent.

Is it already a bear market? Listen to what the Twitter KOLs are saying

The crypto KOLs, who used to speak in a playful style, got into the act and told a segment. The “Wolf of Wall Street” also said he has returned to life: “Whatever the bull market or bear market, I’ve started building tactical support mini-airports for my kids!”

Is it already a bear market? Listen to what the Twitter KOLs are saying
Is it already a bear market? Listen to what the Twitter KOLs are saying

However, as always, people in the market game will always take the trouble to analyze and analyze the market from all angles, and in order to keep up with the market, referring to various indicators is often the most efficient way. Draw on leading indicators to forecast the market, and refer to simultaneous and lagging indicators to verify market movements.

People are more interested in leading indicators that predict the direction of the market ahead of time than lagging and synchronized indicators. Leading indicators tend to outperform the economic cycle and are usually suitable for short and medium-term cyclical analysis. In traditional markets, there are two types of leading indicators that people are often exposed to: macroeconomic leading indicators for fundamental analysis and indicators for technical analysis.

Typically, stock indices, interest rates and Treasury bond returns are widely considered to be very effective leading indicators of macroeconomic trends in traditional financial markets, and as Bitcoin is increasingly embraced by Wall Street institutions, such indicators will become increasingly relevant to the crypto space.

So in a sense, the cryptocurrency market will be linked to the traditional financial markets in the future. In the crypto market, investors can not only judge the impact of national economic trends on crypto assets through the monetary and fiscal policies of each country, but also judge the flow of funds by observing macroeconomic indicators, as well as price trends through technical indicators traded on the floor. Data shows that the base spreads and funding rates of stable currency lending rates and derivatives in the crypto market are very effective leading indicators.

However, indicators are still indicators and are only used as a static basis for our judgment. However, the market is changing rapidly and it is important to keep a good mindset, improve our knowledge, and make more informed decisions with years of hands-on experience. Whether you are trading with reference to indicators or adhering to the concept of value investing, it is essential for an investor not to be too hasty, but to remain rational and keep the risk within the limits of tolerance.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/is-it-already-a-bear-market-listen-to-what-the-twitter-kols-are-saying/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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