Bitcoin Price Surge May Prolong Bear Market Rally

CryptoQuant, an on-chain analytics firm, has observed that the recent price surge in Bitcoin may lead to increased profit-taking. This follows the cryptocurrency's 20% price increase since early April.

The firm defines this rally as a 'bear market rebound', indicating that prices are still recovering from a prolonged downturn. To support this assessment, CryptoQuant cites its short-term holder profitability indicator, which has remained above 1 since mid-April.

This steady profit realization phase may prolong the 'bear market rally' in Bitcoin, with selling pressure rising but a price correction taking time to emerge.