Bad News for Bitcoin (BTC) Bulls from an Analytics Company! “The Recent Rise Isn’t Real, We’re Still in the Bear Market!”
The recent surge in the price of the leading cryptocurrency, Bitcoin ($BTC), pushing it above $73,000, has fueled bullish sentiment.
However, according to CryptoQuant, while Bitcoin’s rise looks encouraging, it appears to be a short-term relief rally rather than the beginning of a new bull cycle.
Julio Moreno, head of research at CryptoQuant, said that according to on-chain data, Bitcoin’s recent recovery was merely a relief rally.
At this point, Moreno predicts that $BTC’s rise above $73,000 is not the beginning of a new bull cycle, but rather a short-term bounce triggered by decreasing selling pressure.
Moreno stated that Bitcoin is still in a bear market, adding:
“Despite the recent price increase, Bitcoin is still in a bear market. Fundamental and technical indicators still point to a bear market environment.”
Therefore, the current rise should be interpreted as a relief rally within the ongoing bear market.
Moreno attributed the recent recovery to improved spot demand, increased interest from US investors, and reduced selling pressure from both short-term and long-term investors.
Moreno highlighted that CryptoQuant’s Bitcoin Bull Score Index is currently 10 out of 100, indicating that technical indicators have not yet recovered in favor of a bull market.
The analyst added that if Bitcoin’s upward trend continues, the next major resistance zone will likely be between $79,000 and $90,000.
The $79,000 level historically acts as resistance in bear markets, representing the lower end of the on-chain price for investors.
$90,000 represents the lowest level of overall realized price for investors, limiting a rally seen earlier this year. Moreno also noted that this range acted as a strong resistance level during the January rally.
*This is not investment advice.
