A top analyst at Coinbase is predicting a lengthy crypto bear market might be on the horizon.
Bearish Signals Flashing
David Duong, Coinbase’s head of global research, points to a key indicator: the 200-day moving average (MA). Both Bitcoin (BTC) and the Coinbase 50 Index (COIN50), which tracks the top 50 cryptocurrencies, have recently fallen below their respective 200-day MAs. This, he says, is a classic sign of a potential long-term downturn. He also notes the overall crypto market cap is shrinking and venture capital funding is drying up – further supporting the bear market prediction.
A Longer View Needed
Duong acknowledges that defining bull and bear markets in crypto is getting more complex as the market diversifies. He suggests a more comprehensive look at overall market activity is needed for a clearer picture.
Potential Rebound on the Horizon?
Despite the bearish outlook, Duong isn’t entirely pessimistic. He suggests a potential market recovery could begin between July and September of next year. He advises a cautious approach to risk for now, but believes crypto prices could bottom out in mid-to-late 2025, potentially leading to a better market in the third quarter of 2025.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
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