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Bitcoin and altcoins experienced an unexpected rebound last night. During this rebound, the BTC price rose to just above $70,000, increasing expectations that the bear market is coming to an end.
However, analysts note that while selling pressure on Bitcoin may have eased, the bear market continues.
At this point, the cryptocurrency analysis platform 10X Research stated that Bitcoin is in a short-term recovery phase.
Analysts noted that Bitcoin’s ability to halt its decline despite risk-aversion sentiment indicates that the downward momentum has slowed but is not yet over.
Analysts also noted that both the RSI (Relative Strength Index) and Stochastic indicators are trending upward, suggesting that this could be interpreted as early signs that Bitcoin is beginning to stabilize within the ongoing bearish pattern.
“Our analysis shows that Bitcoin is still in a bear market, the recent rise is significant but does not yet indicate a confirmed trend reversal.”
Arctic Digital research head Justin d’Anethan expressed a similar view. The analyst stated that increased spot ETF inflows and a recovery in Coinbase Premium prevented a sharper decline in Bitcoin, but these were merely technical changes rather than a bullish reversal.
Finally, similarly, Bitrue analysts attributed the recent recovery to a squeeze of short positions in the derivatives market stemming from negative funding rates.
Analysts, noting that this rise does not represent a structural trend reversal, concluded that the downward trend is still ongoing, citing the lack of sustained capital inflows and effective macroeconomic catalysts.
*This is not investment advice.
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coindesk.com