If Bitcoin rebounds V-shaped after a decline, the bull market is confirmed? PlanB says

Bitcoin has always been the focus of attention on the cryptocurrency stage. Its price trend is like a roller coaster, sometimes soaring and sometimes plummeting, making investors worried. Recently, Bitcoin has experienced another round of decline, and the market is filled with an atmosphere of tension and speculation.

Analyst PlanB pointed out that if Bitcoin shows a V-shaped rebound around next week after this decline, it can be confirmed that it is still in a bull market. He believes that bull markets are usually accompanied by 20%-30% declines, followed by a sharp V-shaped rebound. This view is like a huge rock thrown into a calm lake, causing thousands of waves.

Looking back at Bitcoin’s past trends, there are indeed some stages that conform to the model mentioned by PlanB. For example, in some years, the price of Bitcoin fell sharply and rebounded rapidly, starting a new round of rising market. These historical data seem to provide some support for his views.

However, the price of Bitcoin is by no means determined by simple rules of rise and fall. The macroeconomic environment plays a key role, and the prosperity or recession of the global economy will directly affect investors' investment in cryptocurrencies. Changes in regulatory policies are also crucial, with severe regulation likely to curb Bitcoin transactions, while loose policies may stimulate its development. In addition, market sentiment cannot be ignored. Investor optimism or panic will spread in the market like an infectious disease, swaying the price of Bitcoin.

Investors have different attitudes in the face of PlanB's views. Some investors believe it deeply. They closely monitor the price trend of Bitcoin and look forward to the emergence of a V-shaped rebound in order to seize the investment opportunities in the bull market. Another group of investors are cautious, knowing the complexity of the market and not acting blindly based on a single point of view.

From a technical analysis perspective, the V-shaped rebound of Bitcoin price needs to meet multiple conditions. For example, if the trading volume continues to increase during the rebound, it indicates that the market participation is high and the rebound is more credible. At the same time, various technical indicators such as moving averages, relative strength indicators, etc. can also provide reference for judgment.

In the Bitcoin market, the trends of institutional investors cannot be ignored. They have strong financial strength and a professional investment team, and their trading decisions will have a significant impact on the market. If institutional investors buy in large quantities after Bitcoin falls, it may drive the formation of a V-shaped rebound, otherwise it may hinder the rebound.

Although PlanB gives a basis for judging a bull market, market uncertainty is always with the shadow. New risk factors may appear at any time, such as sudden geopolitical events and black swan events in the financial market, which may disrupt the original price trend of Bitcoin, making the judgment of V-shaped rebounds and bull markets more confusing.

In addition to PlanB, many professionals have also expressed their views on this view. Some people believe that a V-shaped rebound is just a possible signal of a bull market and cannot be used as an absolute criterion for judgment. Some people also pointed out that even if there is a V-shaped rebound, it is necessary to observe subsequent price trends and market fundamental changes to truly determine whether the bull market continues.

Given the complexity of the Bitcoin market, investors have adopted different investment strategies. Long-term investors pay more attention to the fundamentals and long-term value of Bitcoin and will not easily change their investment plans due to short-term price fluctuations. Short-term investors will flexibly adjust their investment portfolios based on price trends and various news to try to make profits in market fluctuations.