Navigating the crypto market: neither bull nor bear

The cryptocurrency market has been a subject of intense speculation and volatility, leaving us uncertain about its current state and the direction is going towards. While we can argue either that we are experiencing a bull market or we are contend that we are on the brink of a bear market, it is clear that we cannot tell for sure one or the other. From my point of view the crypto market is straddling between these two extremes without taking a stance on one or the other, even if I think there is a slow uptrend from what we experienced in 2022.

The crypto bull and bear

In the space of cryptocurrencies, the bull market refers to a period of significant price increases, accompanied by widespread optimism and positive market sentiment. In opposition to that, the bear market is characterized by extended price declines and a general sense of pessimism, while most of participants vanish away. But the current state of the crypto market does not neatly align with either definition. Instead, we find a nuanced landscape where certain cryptocurrencies exhibit bullish characteristics while others display bearish traits. I lived two crypto cycles like this and I know that a bull cycle builds its momentum in a rather medium period of time and I believe we are at that stage in a new cycle.

Market perspective

There are various factors contributing to the uncertainty of the current crypto market. Regulatory developments, technological advancements, investor sentiment, and social and global economic conditions all influence this space and the power to move in one direction with more velocity. On top of that the world conflicts and wars are moving money in other directions instead of being used for technological developments. While certain established cryptocurrencies like Bitcoin or Ethereum experienced growth from the beginning of the year 2023, which is suggesting a bullish trend, others are still under significant price corrections or exhibit stagnation from previous ATH levels, indicating bearish tendencies. This diversity in performance underscores the uncertainty of the crypto market and one can wonder if previous high levels will ever be reached.

Investor action, reaction and inaction

In this ambiguous crypto market environment, individual investor action/reaction/inaction plays a vital role. I see some investors like myself approach the market cautiously, diversifying their cryptocurrency holdings or hedging their positions, anticipating a potential market downturn. My focus is on assets growth, rather than investing in new projects and upping the risks. But others are focus on identifying promising projects and emerging trends, seeking high-growth opportunities despite the overall uncertainty. The appetite for risk plays a high role in these times and we'll see the results later on.

As a general feeling I think that we are neither distinctly in a bull market nor a bear market. The crypto landscape is now more complex and diverse, with various cryptocurrencies displaying both bullish and bearish tendencies. I see extremes on some good projects falling significant from previous ATH (x50), while others just need a bit to recoup the lost glory (x2 x3). But what is clear is that who will put the work in such times when the crypto space might not look appealing for many and is not a get rich quick scheme, will be the ones hefty rewarded when the market will turn fully on a bull trend. At least this is how I see it, this is why I focus on growing my assets, this is why I HODL and patiently wait for the bull cycle to move towards new ATH.

Posted Using LeoFinance Alpha