Hello friends, I believe we are all fine. I've got something really incredible to communicate with us in correlation to crypto market trends and its reverberations on traders. I believe you'll like to see my assertions below.
Introduction
The crypto market has its terminologies, and almost every trader is acquainted with these clepes. Nonetheless, there are different issues that could possibly lead to either a bull or a bear trend in the crypto sphere.
Currently, we're speculating into what would be the market action after Bitcoin intended halving in April 2024 according to Binance but then we would all agree to the fact that the BTC is actually the leading crypto in the blockchain invention and given to this fact, there's a lot to anticipate precisely from October till April from my perspective and current market behavior.
Although many crypto whales have a big say on issues concerning probable trends of the market at each time, the blockchain invention is by default an innovation that is intrinsically promethean and can easily maneuver itself despite the forces bedeviling it.
Consequently, even if an exchange should go into extinction and probably comes to operation again, it must follow the current trend of other cryptos thereby conferring consensus mechanism of all trends across different chains of exchange. What I underscored is that the current trend of Hive for instance in an exchange must correspond with its trend in other exchanges.
Crypto trends are powerful and have a lot to instigate on traders.Despite how a traders wished the market trend to favor him, he is by default compelled to queue in the flow against losing his asset.
My Main Assertions
Screenshoted from my Binance app
The Bull Run.
Nonetheless, let's scrutinize the Bull market trend and its reverberations on traders.
First, the crypto Bull market is a market scenario where the prices of respective crypto tokens are seriously on the increase. There are diverse issues surrounding this market screenplay, which aren't limited to: market overbought, news, halving, inclusion of burning mechanism in project tokenomics
amidst others.
In 2021, the BTC got to an all time high, where it traded at $69,000 but was later resisted at the same spot which was also the case of most other crypto tokens.
Expounding on Issues That Could Lead to a Bull Run.
Market Overbought.
Nevertheless, an overbought phase of the market has the propensity to usher in a bull trend. This is a status quo that prevails after the phasing out of a bear trend or a dominant range market. This market observation can lead to a Bull run
News.
This is another prospect that has the impulse to get the crypto tokens in the bull run. For instance, the world of crypto witnessed a stronger bull run in 2021 which was not just on account of the BTC halving in 2016 but consequent to the adoption of the BTC by the president of Elsavador Nayib Bukele in the same period according to Harvard business school Nonetheless, this also contributed to what gave the respective tokens the strength to trade to such height in the same period.
Moreover, a handicapped flow of tidings about cryptocurrency in a region can also crippled or malignantly pose a threat to its price. For instance, we would observe how the US court is vehemently attacking XRP that they violated laws that is to the interest of Investors by selling their crypto currency XRP according to WJS and has the predisposition to alter interest in investing into cryptocurrencies and further lead to a drop or drawdown in prices of other tokens.
Halving.
The halving mechanism of BTC for instance has a lot to do in terms of prices of other tokens. For instance after the first halving of BTC in 2012 according to Forbes It's price rose to a significant price about $13 trading as high as 185% before January 2013 according to statmuse and since then, the price of BTC has been trading competitively against every coin in the blockchain.
So halving in compendium, has the capacity to lead to a Bull trend in the crypto sphere.
Burning of cryptocurrency.
This also has the predilection in pushing the prices of any token that commix the burning feature in its tokenomics to the bull. Whenever crypto tokens are burnt, the price normally takes a bull run. In essence, the burning mechanism of a crypto tokenomics helps a token price to keep bullish, probably in the short or possibly into a longer period of time.
This we would attest to what exactly happened to Ethereum when about 70,000 pieces of it was burnt in the same 2021 which gave it price a massive boost as it currently trade competitively this is according to Google
I believe that these maintained thesis and more are the reasons or issues backing a cryptocurrency bull run.
Possible Effects of The Bull Run on Traders.
At this point, I'll be giving a general annotation in response.
TRADERS are Forced to Buy.
During the Bull run, most traders are forced to buy and hold different tokens as they speculate a positive and sizable increase in the values of the tokens they intend to hold.
Currently, people aren't sure when this bear trend will be over for them to actually hold the token of their choice but once the bear trend is over, most traders will be forced to even hold tokens they aren't sure of its tokenomics.
Value Increment.
The Bull run by default is a time when the asset values of investors increases. Assuming one buys hive or Leo now the price is very infinitesimal although not that so insignificant, he stands the chance of having an increased value when it's price takes a bull run.
In compendium, the general effect of the Bull run on traders, is the increased value of their respective assets unequivocally.
Screenshoted from my Binance app
I wouldn't dwell much on this since the bear market is a direct opposite of the bull market but then, I wouldn't mind throwing some light on it.
The bear trend or market is a crypto market scenario where the prices of respective assets are in an intense decrease. Although this could differ from one token to another. For instance, the rate of price decrement in hive token, may not be the same as that of Leo.
Consequently, there are many factors surrounding this issue but these lopsided menace aren't limited to the following: crypto over sales, crypto flooding, whales manipulation of the market.
Nonetheless, I'll like to shed a little light on the enumerated observations above for a better intake of my assertion.
Crypto Over Sales.
Most traders may refer to this/these positions in the crypto sphere as positions of market resistance. These are spots where holders of different crypto tokens have to let go of the token they're holding given the fact that such token has made its highest price increase.
These positions isn't that easy to spot as it may occur two to three times before the trend goes bearish. Most times it is referred to as double top position.
Hence, an oversold region of the crypto market has the capacity to usher in a real bear trend irrespective of who's still holding his asset.
Crypto Flooding.
This is another issue that clungs the bearing of tokens prices. This happens when a particular set of holders but especially miners sell their tokens in colossus. Although this does not have a long-run effect in the crypto market as the trend is meant to revamp after the said quantity of token has been absorbed by traders.
Consequent to this, the current bear trend we all are stocked in is also contingent upon this issue of flooding where a group of BTC miners, flooded the market with $105 million worth of BTC according to Binance
Aphoristically, we can also deduce that miners have a stake in the bearing of prices of crypto tokens and this also stands unequivocal.
Whales Manipulation of The Market.
This is a normal occurrence in the crypto market. Although this is fair when compared to the issue of flooding. Most traders are used to the term "fakeouts." Well fakeout is not a real trend of the market.
This usually happens when different whales intend to buy a particular token at a very minimal price, not respecting the current order of the market. This market occurrence also has the potential of thronging the Crypto market into a short run bear trend, although it also happens during a bull run making it a dual activity in the crypto market.
Possible Effects of The Bear Run on Traders.
Traders, especially spot traders and other holders of a particular token are forced to sell their assets without minding if they've made their desired profit or not.
During the bear trend, everyone admits to the fact that further holding of their token will turn malignant on them since they don't really know when the market may revamp again.
Lost of Values.
In the bear run, hodl of a particular token risk the opportunity of losing the values of their assets if they should conclude not to sell.
Consequently, I believe that most traders still held to their positions during this bear run and we must all attest that every token holder lost a substantial value of their assets.
Laconically, bear run in general leads to the loss in the values of traders assets although some other traders like; future traders, Margin, and CFD traders may capitalize on this opportunity for greater returns.
Conclusion
The Bull and Bear run are strategic positions in the crypto market scenario which every trader must advertently pay attention to, else one stands to risk the value of his assets irrespective of the quantity he has.
It is advisable to hold tokens when there is a Bull run, although this is specifically for spot traders and holders and then sell when the bull run is over.
There are many factors that influence the crypto market which I also elucidated above but then as a normal trader, it is better to hold your asset than trading if you've not gained absolute control over your emotions.
No one can absolutely speculate into every certain occurrence in the crypto market even with the aid of indicators which makes it advisable to possibly buy when a token price has gone down and then sell when its price is fully done with the bull run.
Permit me to draw the curtain at this point. I believe you also learnt something, hope to see you in my next publication bye.
I took the two screenshots from my Binance app and further edited using imarkup app.
Shared Twitter link.
https://twitter.com/okorodavid19/status/1692553473559073076?s=20
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