Debate surrounding if the Bitcoin bull market is over due to the recent correction is at a full boil, while many are already searching for a bottom of the current downtrend.
Bulls must be careful not to jump the gun due to buying the dip working so well over the last several months. Because bears have only just now taken control of Bitcoin, according to a trend strength measuring indicator.
Analyzing The Crypto Correction And The Possible End Of The Bull Market
Bitcoin price is down by more 50% after a deep drop over the last month – among the worst monthly candles on record were left behind in the wake.
After such a steep correction and the last bull market never allowing more than a 37% retracement, more traders are looking for a bottom to buy rather than a bounce to short.
Related Reading | Two Paths Of A Bitcoin Bull Run, And If A Bear Phase Is Next
The idea the bull market will be back on so soon could lead to losses and a painful realization that this cycle is very different this time around. That’s according to the Average Directional Index, which suggests bears only just got back control over Bitcoin, and likely won’t let up anytime soon.

The Average Directional Index shows where bears took over | Source: BTCUSD on TradingView.com
The Average Directional Index Says Bears Now Taken Over Bitcoin
The weekly Bitcoin price chart above shows the many times bears took over the cryptocurrency trend according to the trend strength measuring indicator.
Bullish impulses are always the strongest, which send the Average Directional Index itself rising to the highest readings historically. However, the Directional Movement Index indicators that work with the ADX indicate when bears or bulls are in control of the trend.
Related Reading | Market Timing: Why Bitcoin Could Sweep Lows Before A Bounce
In this case, bears have just taken over Bitcoin after an entire year. So while bulls are expecting an immediate bounce back to highs, a correction anything less than three months long doesn’t make much sense compared to the length of past bear phases.
Instead, with each passing bear phase, the following bullish impulse gets stronger, suggesting that when bulls do finally take back control, bears will have all but been eliminated, allowing the cryptocurrency to rise to the all-time highs that investors have been expecting – upwards of around $100,000 per coin or higher.
With bears winning the battle currently, it doesn’t mean they’re totally in charge for the long term. Even during past bear phases, bulls did at times regain the upper hand causing a bounce. Until the current bear phase has ended, shoring those bounces if the right way to go, and leave dip buying for later when the new uptrend is confirmed in a similar fashion via the ADX.
Featured image from iStockPhotos, Charts from TradingView.com

Ericka Turcotte

By Ericka Turcotte

I have worked in the financial sector for over 10 years and have a keen interest in cryptocurrency. I have been writing about crypto for the past two years and have become one of the most respected authors in the space. I have a deep understanding of how this new asset class works and am able to provide insights that are both interesting and useful to my readers.

bitcoin
Bitcoin (BTC) $ 16,253.89
ethereum
Ethereum (ETH) $ 1,179.10
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 297.51
usd-coin
USD Coin (USDC) $ 0.999714
binance-usd
Binance USD (BUSD) $ 0.999900
xrp
XRP (XRP) $ 0.383739
dogecoin
Dogecoin (DOGE) $ 0.095230
cardano
Cardano (ADA) $ 0.306634
matic-network
Polygon (MATIC) $ 0.826377
polkadot
Polkadot (DOT) $ 5.17
staked-ether
Lido Staked Ether (STETH) $ 1,160.27
shiba-inu
Shiba Inu (SHIB) $ 0.000009
litecoin
Litecoin (LTC) $ 72.94
okb
OKB (OKB) $ 20.72
dai
Dai (DAI) $ 0.998837
solana
Solana (SOL) $ 13.39
tron
TRON (TRX) $ 0.052874
uniswap
Uniswap (UNI) $ 5.25
leo-token
LEO Token (LEO) $ 4.23
avalanche-2
Avalanche (AVAX) $ 12.61
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 16,210.77
chainlink
Chainlink (LINK) $ 6.67
cosmos
Cosmos Hub (ATOM) $ 9.70
ethereum-classic
Ethereum Classic (ETC) $ 19.23
the-open-network
The Open Network (TON) $ 1.72
monero
Monero (XMR) $ 135.02
stellar
Stellar (XLM) $ 0.088638
bitcoin-cash
Bitcoin Cash (BCH) $ 108.76
algorand
Algorand (ALGO) $ 0.232606
quant-network
Quant (QNT) $ 114.41
crypto-com-chain
Cronos (CRO) $ 0.063088
filecoin
Filecoin (FIL) $ 4.19
apecoin
ApeCoin (APE) $ 3.69
vechain
VeChain (VET) $ 0.018362
near
NEAR Protocol (NEAR) $ 1.54
hedera-hashgraph
Hedera (HBAR) $ 0.048147
frax
Frax (FRAX) $ 1.00
flow
Flow (FLOW) $ 1.11
internet-computer
Internet Computer (ICP) $ 3.84
elrond-erd-2
MultiversX (Elrond) (EGLD) $ 42.32
eos
EOS (EOS) $ 0.910876
terra-luna
Terra Luna Classic (LUNC) $ 0.000158
theta-token
Theta Network (THETA) $ 0.915427
chain-2
Chain (XCN) $ 0.042942
paxos-standard
Pax Dollar (USDP) $ 1.00
tezos
Tezos (XTZ) $ 0.977648
huobi-token
Huobi (HT) $ 6.76
chiliz
Chiliz (CHZ) $ 0.162060
the-sandbox
The Sandbox (SAND) $ 0.553979