Bitcoin has recently shown recovery, as Monday’s statistics showed it pulling away from the bearish sentiment. In just 24 hours, the cryptocurrency rose up by 6%, compared to the 7% rise in Ether’s value.
A bull market can be defined as one that is on the rise, being enabled by a generally favorable economy. On the contrary, a bear market can be defined as one that exists in a receding economy, and where most of the stocks are dropping in value.
Bitcoin’s value lowered due to a major sell-off period. Experts believe that once the sell-off is over, it could make way for growth to new highs. This is because investors who believe that the prices will increase over time (bulls) had already locked in their profits, and were also able to buy the dip.
On the contrary, BTC’s value has dropped below its 50-day average – at approximately $60K. This caused resistance for Bitcoin in the last ten days.
Period of Volatility
Looking at the statistics right now, Bitcoin and Ether’s thirty-day volatility period stood lower as compared to the beginning of the year. Even though the latest spike caused waves, the S&P 500’s annual volatility has dipped compared to its peak in March of 2020.
Analysts of the crypto market have predicted that the volatility will once again rise up next year, especially considering the stable correlation between Bitcoin and S&P 500. Strong trends in every season have indicated that there won’t be as many pullbacks in “risky” assets, such as crypto and stocks.