Could 2022 Be the Year of the Bear Market? And What Does This Mean for Bitcoin (BTC), Dogecoin (DOGE), and HUH Token (HUH)?
December 2021 was an up and down month for cryptocurrency. There was a flash crash on the 4th which saw multiple billions wiped off of the total crypto market cap. Dips in price such as the one in December cause some critics to warn of a bear market. However, when taken as a whole, 2021 was about as bullish a year as the market had seen.
Bitcoin (BTC) started the year at $28,994.01 and saw a new all-time high of $68,789.63 in November 2021. This was an increase of almost $38,000 and 137%. Other cryptocurrencies, such as the meme-based Dogecoin (DOGE) skyrocketed. It saw a huge rise from $0.004681 in January 2021 to a high of $0.68 near the end of the year. HUH Token (HUH), the world’s first “utimeme” coin, launched in December 2021 and saw a massive price increase of over 4000%.
At the beginning of 2022, the prices of all of these cryptocurrencies have either stagnated or fallen. Bitcoin fell almost 9% from $46,311.74 to $42,266.19. Dogecoin saw a drop of similar proportions, from $0.1705 to $0.1563. Despite being fresh on the market and having enjoyed great success up to the new year, HUH token has dropped around 20% since January the 1st. Will these price drops persist? And could 2022 be the year of the bear market?
What is a Bear Market?
A bull market is one that is experiencing sustained and substantial growth. Conversely, when markets decline substantially or over a sustained period of time it is labelled a bear market. Characteristics of a bear market include low confidence from investors, falling prices, and a supply that is greater than the demand. A generally accepted sign of a bear market is a price drop of 20% across the board, but this is not set in stone. Signs like this can trigger uncertainty, causing investors to sell and further dips to occur. Technical analysis, such as moving averages (MAs) and the Relative Strength Index (RSI) can also help to point towards a bearish downturn.
When Was the Last Bear Market? And Will 2022 Be the Next One
The last bear market was at the beginning of 2018 when BTC fell 65% in a matter of days. The crypto market showed its propensity for volatility in May 2021. Following criticism from Elon Musk and a crypto crackdown in China, around 50% was knocked off of Bitcoin’s value, and Dogecoin took a 45% hit. There have been some experts predicting an oncoming bear market for a while now.
Technical analysis of Bitcoin’s “double top” pattern could be a bearish indicator.
As defined by Investopedia, a double top pattern could mean “that investors are seeking to obtain final profits from a bullish trend…double tops often lead to a bearish reversal in which traders can profit from selling the stock on a downtrend.”
Ongoing uncertainty around the Omicron variant, the latest stage of the COVID-19 pandemic, could be the reason for the dip in December 2021 and the beginning of 2022. It doesn’t look as though this coronavirus will be going away any time soon and it will potentially continue to have a prolonged impact on the crypto-sphere.
Predictions of a Bear Market Could Be Premature
Despite Bitcoin and HUH token being 37% and 70% down on their all-time highs respectively, calls of a bear market could yet be premature. The future looks incredibly bright for some up and coming coins, including HUH.
Bitcoin continues to be the standard-bearer for cryptocurrency, and any advances in the market will surely involve BTC. Provided that Dogecoin maintains its viral popularity, and Elon Musk continues to mention it on Twitter, DOGE could continue to build on its 2021 success.
When it comes to HUH, there is an almost incalculable amount of room to grow. On January the 6th HUH token was launched on Uniswap, which completed stage 1 of HUH’s roadmap; a surefire sign of progress. Bold ambitions include linking hundreds of influencers with HUH token and the launch of a MetHUHverse indicate a bright future. With adoption increasing every day, and ambitious plans from major cryptocurrencies, 2022 may not be the year of the bear market after all.
Learn More About HUH Token Here:
HUH Official Swap- https://swap.huh.social/