Bitcoin's Recent Rebound Raises Concerns of Another Bear Market

Bitcoin's recent price action has been characterized by a rebound towards the $78,000 level, but this recovery is being met with caution from analysts at CryptoQuant. According to their analysis, the current market conditions closely resemble those of the Bitcoin bear market in 2022, which preceded a significant decline.

The warning comes after Bitcoin faced rejection near its 200-day moving average around $82,000. Historically, failure to reclaim this level has been seen as confirmation that a bearish trend remains intact.

CryptoQuant's research firm noted that the current episode mirrors the failed March 2022 recovery, which eventually led to deeper downside pressure. They also highlighted several key demand indicators that are deteriorating simultaneously, including weakening spot Bitcoin demand, declining perpetual futures activity, and negative Coinbase premium data.