Is The Crypto Bear Market Arriving Too Soon?

• Crypto traders and investors tread cautiously as the buzz about the early arrival of the bear market starts to resonate.

October’s Uptober vibe faces strong headwinds following the massive crypto liquidations last weekend, which wiped out over $19.2 billion in leveraged positions from the market. Hyperliquid (HYPE) CEO Jeff Yan believes the numbers may even be worse than we previously reported, but he considers the situation a “healthy correction.”

Bitget Chief Analyst Ryan Lee also warned that Bitcoin (BTC) could soon retest the $100,000 mark, while Ethereum (ETH) could test its support at $3,600. Despite the analyst assuring that these events may serve as launchpads for higher bounces at around $130,000 for BTC and $4,800 for ETH, an air of caution continues to grip the crypto community this Tuesday.

Air of Uncertainty Lingers

The current 38 score at the Crypto Fear & Greed Index indicates that the market is still cruising within a state of “Fear.” It’s the same score as Monday but has significantly increased from Sunday’s 24-point “Extreme Fear” rating.

ADVERTISEMENTCrypto Fear & Greed Index (Source: Alternative.me)The data suggests investors remain worried. Nonetheless, the conditions offer a buying opportunity for traders or investors with high risk tolerance and those who expect the market to recover soon.

Bitcoin Enters Early Phase of the Bear Market

The recent analysis of the pseudonymous Doctor Profit, a crypto trader with over 437K following on X, is not helping lift the community’s spirits either. He warned that Bitcoin has already entered the early phase of the bear market.

On the other hand, the crypto personality predicted short-term dead cat bounces or temporary price recoveries along the way for BTC and altcoins. But then again, he advised against becoming “max bearish” after the market just experienced a heavy drop. So, he looks forward to massive liquidations for those who are continuously shorting the market.

ADVERTISEMENTSome agreed to “Uptober” possibly turning into “Dumptober” as traders brace for more huge crypto price drops.

HyperUnit Bear Whale Shorting the Market Again

Making matters worse is the fact that the HyperUnit whale that shorted the market during Friday’s market crash and made $200 million out of it just bet against the market again. According to Arkham, the trader deposited $40 million in USDT to Hyperliquid and shorted BTC for $127 million on Monday.

At the time of Arkham’s update, the whale had $300 million BTC shorts with $5 million in unrealized profits.

A Mixed Sentiment on the Uptober Fever

Amid all the FUD (Fear, Uncertainty, Doubt) flooding the narrative, several investors and analysts are convinced that October is an essentially bullish event for the crypto market. Coin Bureau opined that developments in the US-China trade relations could jumpstart investor optimism soon, but warned that the rules have appeared to have changed in the digital asset sector.

With that, people should remain vigilant as the market could be heading to another wild and unpredictable ride.

ADVERTISEMENT