Will This Crypto Winter Be the Worst? All that Traders Have to Know

Cryptocurrencies, tokens

Recent years mark the excessive surge of demand for cryptocurrencies around the globe. It has become an utmost interest of both the investors and the traders. However, the crypto market is still under development and has drastic changes. Thus, it is constantly evolving. Therefore, usually, every upward movement of currency prices faces a downfall at the same rate. So, it is impossible to predict the future of Crypto Winter. 

Yet, with the comprehensive observation of the professional HODLers, we can learn what they are attending this season. This article will help in learning will this Crypto Winter be the worst or not. 

What does the term Crypto Winter mean? 

According to professional traders, Crypto Winter is the potential crash of the market that is more likely to occur before the end of 2021. It is a time when the prices of cryptos significantly fall even below the bullish trend cycle. As a result, the overall trading market falls into pieces facing a drastic crash. 

The possible consequence of this market crash is that the market becomes steep. As a result, the prices remain at the low level for a long time. In other words, it leads to flat trading or trading with low upward price fluctuations. 

For instance, in 2021, Bitcoin suffered a 65% severe downfall from January to February. Due to this, it lost the value of nearly $4000, making an 80% decrease from the top. 

BTC/USD price chart
BTC/USD price chart

When does the Crypto Winter begin?

The price drop of Bitcoin to nearly $30,000 in July 2021 gave rise to the rumors about Crypto Winter. It has brought a rough time over Bitcoin. However, many news reports have noted that the condition of Bitcoin in the trading market is a lot more stable than in 2018. 

One report says that Bitcoin’s price drop is far from the bearish trend. After hitting a fresh all-time high of around $69,000, the BTC/USD is trading just below the key mark of $50,000 in December 2021. The decrease in price value is due to the technical changes in price movements. So, the crypto winter begins when the currencies prices move in the bearish trend away from the bullish market. 

Crypto Winters from 2014 to 2020

The Crypto Winter of 2014 and 2015 had driven the capital of the trading market to fall out to nearly five USD million from 15 million USD. 

The 2018 severe market crash had lasted for two to three years. It ended in 2020, severely affecting the trading market. 

Crypto Winter 2022: when is better to sell crypto?

The Crypto Winter excites the selling market as the asset prices move down the bearish trend. Nevertheless, it is the market crash that, in most cases, can be the worst. However, the strategic steps can prevent you from facing huge losses like the ideal trading time.

Predicting the ideal trading time is difficult, especially for cryptocurrency. It happens because it is much more volatile than the average stock. 

The basic formula for crypto trading is to buy investments when their prices are low, then sell them once they reach their peak. According to the analysis, the researchers found that the peak trading hours in the crypto market are typically between 8 a.m. to 4 p.m. GMT. 

Bitcoin vs Ethereum 1 year returns

These are the hours during which each region witnesses the most trading activity. However, the market doesn’t hit its peak daily. Unfortunately, no one can tell the best time to sell your cryptocurrency for the best profits. So you have to decide and get ready for the unpredictable results when you make a deal.

How to know what crypto to sell first?

Considering the market history of cryptocurrencies, we can see that Bitcoin was the best performing currency in the past few years. However, only in 2018’s Crypto Winter, BTC specifically faces a severe downfall. 

Recently, prices of cryptocurrencies are again falling after they have begun to rise to an extent. It is merely because of the volatile nature of the crypto market. So, to save yourself from becoming the prey, it is better to do slow, strategic, and patient crypto trading.

It is better to sell that crypto first whose 50 days SMA falls below the average value line. It will help you in understanding if the currency is recovering or not. For instance, in this case, it isn’t. 

Best tokens and coins to HODL during Crypto Winter

The fear of Crypto Winter 2022 has made everyone concerned about what currency to hold and which to sell for a reasonable profit. According to the market reports, the Ethereum cryptocurrency will more likely overrule Bitcoin. It will make the cryptocurrency preferable for investors and traders to hold in 2022. 

Ethereum price action from August 2021 to Dec 2021
Ethereum price action from August 2021 to Dec 2021

The recently introduced EverGrow crypto coin is also sensationally growing in the crypto market. Considering the crash of the biggest currencies like Bitcoin during the Crypto Winter, this newly launched crypto can be the best coin to hold during the Crypto Winter. It is because EGC has also shown steady growth since its launch.

When does the Crypto Winter end?

Crypto Winters generally last for a long time. Like in history, it has even lasted for a maximum of two years. So, there isn’t a fixed limit for Crypto Winter. Instead, it ends when the cryptos recover from the bearish trend following the slightly upward or steep movement.

Final thoughts

Crypto Winter, opposite to the name, isn’t a dream-like situation. It has caused severe adverse consequences to the crypto trading market, making the traders lose their multiple assets. Yet, the comprehensive research of the crypto market and price actions can help predict the rough time. It will then make it easy for the investors to be ready before the time comes. 

Nevertheless, the question of will this Crypto Winter be the worst depends on how you tackle it.

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