Did the Recent Bitcoin Rise Start a Bull Run? Or Are We Still in a Bear Market? Experts Explain!

Bitcoin ($BTC) experienced a strong recovery despite the ongoing US-Iran war, rising above $76,000.

However, while talk of a rally for $BTC intensified after it retreated to the $74,000 level, Wintermute said it was too early to say.

Cryptocurrency market maker Wintermute said Bitcoin has weathered the initial sell-off but the trend hasn’t reversed yet.

Wintermute analysts offered a cautious view in their weekly report, stating that Bitcoin has weathered the initial selling pressure of the bear market, but it is still too early to fully assess a trend reversal.

Wintermute, in his analysis, noted that Bitcoin has shown relative strength compared to other assets due to reduced selling pressure and confirmed institutional fund inflows. The current market structure is more positive than in the last few months.

At this point, the company said that market conditions were becoming more constructive, citing recent positive turnarounds in the $BTC Coinbase Premium index, increased ETF inflows, and institutional over-the-counter purchases as examples.

Wintermute noted that institutional demand for Bitcoin was particularly concentrated around $60,000, while individual investors were adopting a relatively wait-and-see approach.

It’s Still Too Early to Say Bitcoin is Bullish!

However, Wintermute emphasizes that it is difficult to conclude that the current situation is a full-fledged bull market, suggesting a cautious approach going forward.

At this point, the firm argues that the $74,000 and $80,000 levels are likely to act as significant resistance levels for Bitcoin.

Analysts also noted that, from a cyclical perspective, previous bear markets took approximately 400 days to reach their peak and trough, whereas the current cycle reached its trough in less than 200 days.

At this point, Wintermute believes this bear market will be shallower and shorter than previous ones, but he underlined that the Fed’s interest rate policy and energy-related news stemming from risks in the Middle East could affect prices.

*This is not investment advice.