Lark Davis says we are still in a bear market.
In a tweet on Monday, popular crypto investor Lark Davis warns that we are still in a bear market despite the latest crypto rally.
“Just remember, macro conditions have not changed dramatically. This is still a bear market until proven otherwise, Be Careful…” Davis tweeted as he admonished crypto investors to exercise caution.
Just remember, macro conditions have not changed dramatically. This is still a bear market until proven otherwise.
Be open to opportunities!#crypto
— Lark Davis (@TheCryptoLark) July 18, 2022
It is worth noting that Davis is not the only market analyst calling for caution in the markets. For example, in a tweet on Sunday, seasoned market analyst Peter Brandt warned that the latest Ethereum price pump lacked the necessary volume to sustain it, even as a user commented that it is merely a short squeeze.
“The (ETH) upturn came on extremely light volume. I.E. the thrust was not based on aggressive buying from strong hands and is, therefore, questionable.”
The upturn came on extremely light volume. I.E. the thrust was not based on aggressive buying from strong hands and is, therefore, questionable
— Peter Brandt (@PeterLBrandt) July 17, 2022
The crypto markets have endured a difficult eight months since November 2021. Notably, it has faced pressure from rising inflation concerns, and the internal structure collapses from the likes of the Terra ecosystem. Consequently, several cryptocurrencies have dropped almost 90% from their highs.
As previously reported by The Crypto Basic, price action trader Justin Bennett noted last Tuesday that this bear market differs from previous crypto bear cycles. According to Bennett, it is the first time Bitcoin is facing such macroeconomic conditions. As a result, Bennett believes the leading crypto asset could still plummet to $8,500.
Meanwhile, CryptoQuant, in a blog post on Sunday, reveals that miners have started to capitulate. CryptoQuant analyst Edris wrote that miners in the last few weeks had distributed more Bitcoin than ever since January 2021, warning that prices could drop further.
At the time of writing, Bitcoin has again pushed past the $22k price point. It is up 3.57% in the last 24 hours and 8.81% in the last seven days. Meanwhile, Ethereum remains above the $1400 price point, up 7.40% in the last 24 hours and 27.98% in the last seven days.