In its latest analysis, crypto asset research company Matrixport highlighted one of the key indicators used to determine whether Bitcoin has entered a bear market.
According to the company, a common observation in market cycles is that larger price drops occurring more frequently within 30 days could be a harbinger of a bear market.
Matrixport highlighted that it is relatively rare for Bitcoin to lose more than 20% of its value in 30 days during bull markets. However, it noted that such sharp declines tend to occur repeatedly during bear markets. Therefore, the frequency of large short-term pullbacks can help understand whether the market is structurally weak or not.
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