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Bitcoin's price is sort of 45% away from its all-time high of $126,080, reflecting a deteriorating market climate in recent months. One of the symptoms that confirmed the emergence of the bear market was the downward break of the 365-day moving average at the top of last 12 months. Using this metric, a widely known crypto researcher has presented an assessment that shows how the present Bitcoin bear market compares to previous ones.
BTC price is 30% below the 365-day moving average
In a brand new post on the social media platform, the indicator at the middle of this evaluation is the 365-day easy moving average (SMA) on the BTC price chart.
Moreno defined the beginning of the bear market because the moment when the worth of Bitcoin fell below the 365-day SMA. According to the on-chain expert, the leading cryptocurrency is down 30% to date in the present phase, making it one in every of the worst bear seasons in recent memory.
Source: @jjcmoreno on X
As will be seen within the chart above, the worth of Bitcoin is lower than is commonly seen during this phase of the bear market. During the 2014 bear market, the flagship cryptocurrency barely fell by 20% at this stage of the season.
The same goes for the 2018 bear season, which was closer to around 20% at that time. However, Bitcoin's price can have succumbed to more pressure within the 2022 season, because the market leader was almost 60% below its 365-day moving average at this stage of the cycle.
This trend is especially interesting considering that Bitcoin is believed to have matured as an asset class. However, the world's largest cryptocurrency still appears to be experiencing incredible volatility in the beginning of the bear market.
While it’s unclear when Bitcoin price will bottom, certain conditions should be met for a trend reversal to occur. One of those conditions is obvious demand, which has continued to deteriorate in recent weeks. As shown by the outflow figures from US-based Bitcoin ETFs, capital constraints have been a significant problem for the leading cryptocurrency.
Bitcoin price at a look
As of this writing, the worth of BTC is around $70,500, up over 2% within the last 24 hours.
The price of BTC within the each day time-frame | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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