Statistics recently revealed a significant shift in the crypto sector’s overall market cycle, indicating a bearish trend. Julio Moreno, a renowned analyst on CryptoQuant, confirmed that the Bull-Bear Market Cycle Indicator has signaled the start of a bear market, marking the first occurrence since January of the previous year. Moreno took to his official X account to provide detailed information about this development.
The Bull-Bear Market Cycle Indicator has highlighted the bear phase, represented by the high blue area, for the first time since January 2023. Previous instances when it indicated bear phases for a limited period were during the COVID sell-off in March 2020 and the Chinese mining ban in May 2021. Moreno shared this information on Twitter on August 6, 2024.
The CryptoQuant analyst emphasized that the Bull-Bear Market Cycle Indicator has a history of accurately anticipating market trends. It functions as a momentum metric, focusing on assessing market sentiment by analyzing the difference between the 365-day moving average and the Profit and Loss Index. This indicator is known for its role in detecting market cycles.
The Bear Cycle indicator has now fallen below the level of 0 and the 365-day moving average, indicating a bearish market stage. Historically, this indicator has effectively signaled major market transitions. Notably, it successfully predicted the onset of the prolonged bear market in November 2021. This highlights its reliability. According to the CryptoQuant analyst, the latest indication suggests that the market may be entering a period of price declines and reduced returns.
