Bitcoin Bear Market Not Yet Over: CryptoQuant Analysts

The recent surge in Bitcoin's price does not signal the end of the bear market, according to CryptoQuant analysts. The data indicates that the cycle momentum indicators in Bitcoin have failed to return to the neutral zone.

CryptoQuant analyst Gaah notes that the Bitcoin Cycle Momentum chart shows that the bear market is not over yet. The indicator has fallen to -30 points, which is historically a deep zone for a cyclical bottom formation.

However, this does not immediately confirm a trend reversal. A reversal could only be confirmed if the Bitcoin price forms a bullish pattern and the cycle momentum indicator rises above the neutral zone.

Burak Kesmeci, another CryptoQuant analyst, argues that Bitcoin needs to reach and surpass $72,100 to begin its upward trend. The $72,100 level is currently acting as a strong resistance line, and until it is breached, selling pressure from new large investors in a loss-making position could negatively impact the market.

The average purchase price for new large investors who have held Bitcoin for less than 155 days is around $72,100. If these support levels are broken, BTC risks falling to around $47,400, which is the average cost for large long-term investors.