Bears are waiting for the “inevitable” capitulation before starting the next crypto bull run. But what if the dip never comes? Covered: Is It Hibernation Time For The Bears? Crypto Capo Lengthen Your Time Preference hear me out for a sec, what if, no pullback — Ansem ?? (@blknoiz06) March 29, 2022 Bitcoin and the […] The post Are You Prepared For The Longest Crypto Bull Run In History? appeared first on CryptosRus.

Are You Prepared For The Longest Crypto Bull Run In History?

Bears are waiting for the “inevitable” capitulation before starting the next crypto bull run. But what if the dip never comes?

Covered:

  • Is It Hibernation Time For The Bears?
  • Crypto Capo
  • Lengthen Your Time Preference

Bitcoin and the crypto markets have chopped up short-term traders for the past two months, but the bears are really starting to feel the pressure now as Bitcoin pushes back up to $48,000. While they’re waiting for another pullback to start loading up their bags, they may seem to forget that Bitcoin’s most recent breakout concluded the end of a nearly four-month downtrend. What if that sacred dip never comes?

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Is It Hibernation Time For The Bears?

You may know the pain of taking profits too early and watching your beloved altcoin pull another bullish rally the moment you sell. But what might be even more painful to watch is seeing the entire crypto market rally while convincing yourself to stay sidelined in stablecoins.

One of the most bearish traders in the space right now, Crypto Capo, serves as a great example of a lot of crypto bears’ sentiment toward the market. They’re patiently waiting for another capitulation event, and sitting in disbelief as Bitcoin rises higher and higher by the day, seeming to have no plans of taking another dip.

Based on the chart shared by Capo, it looks like we should be expecting another capitulation event, right? Well, to the bears, it obviously looks like that’s true; and we’ve seen every reason under the sun to believe markets should crash, from hawkish rate hike talks, to rising inflationary pressures, and even literal war breaking out.

But perhaps the bears are leaving out some small details in the chart that tell us that their coveted capitulation event has already occurred.

Most notably, since the initial capitulation wick in May 2021, we’ve printed a higher high and higher low on the long-term time frame. So the macro momentum is still trending up, though subtle. We also saw another flush out back in 2020, when the coronavirus pandemic washed out any signs of a bull left in the markets. Are the bears just getting greedy asking for more?

Now, I’m not saying that Capo is 100% wrong about the most recent rally, and I respect the conviction in sticking to his bear thesis despite the strength we’re seeing. But as highlighted by the on-chain analyst Will Clemente, if we are truly seeing a macro shift in the crypto market trend and turning on the bull jets, any dips that are to come will be shallow and sparse.

While the bears wait for just one more flush out, perhaps it’s time to accept that crypto bull runs are lengthening as the asset class matures.

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Lengthen Your Time Preference For This Crypto Bull Run

When trying to see the bigger picture and visualize just how different crypto as a market is these days, I always love to come back to this fantastic cycle analysis from the crypto analyst Benjamin Cowen. He’s been preaching the thesis of “lengthening cycles, diminishing returns” for years now, and all the data we have on Bitcoin suggests just that:

“Lengthening cycles, diminishing returns” isn’t a concept that just applies to Bitcoin and crypto, however; it’s a fundamental property of reality. We can observe this phenomenon in all walks of life, whether it’s a technological adoption cycle, a product-life cycle, or the satisfaction you get from eating a box of cookies — the marginal return diminishes over time, and it takes longer to achieve those gains.

Crypto bull runs have long been renowned for their quick returns and flash-in-the-pan innovation cycles that draw in participants from all different markets. In the early days of crypto before reaching mainstream attention, price impulses were higher, faster, and stronger. But as the asset class matures in its adoption cycle, we have to acknowledge that those returns don’t bring the same instant gratification that they used to.

Diminishing returns, however, isn’t necessarily a bad thing. On the bright side of things, a slower appreciation schedule means that you have more time to get involved in the game. A lot of bearish traders these days claim that the cycle is over considering it’s lasted about as long as the previous cycles, but perhaps 2021 merely served as a much longer pit stop in the middle of the road to higher prices in the future.

Countries, companies, and financial institutions don’t like losing money. So with all the big-money players getting in the game over the past year or so, we can rest assured knowing that these whales are expecting higher prices in the future, too. So use diminishing cycles to your advantage, and lengthen your time preference.

The post Are You Prepared For The Longest Crypto Bull Run In History? appeared first on CryptosRus.