Bitcoin Bear Market Not 'Over Already' as Price Rejects at Key Level

Recent Bitcoin price action suggests the bear market may not be over, as initial upward momentum encountered resistance at a significant technical level. This rejection has led many traders to believe that the current market cycle could mirror previous bear market patterns, implying further downside risk.

The inability of Bitcoin to decisively break through and maintain a position above this level is being interpreted by some analysts as a sign of continued weakness. The failure to reclaim what was previously considered a support zone underscores the prevailing bearish sentiment within the market.

Expert View

From a technical analysis perspective, the rejection at this key level is a significant indicator. It suggests that sellers are still dominant and that buyers lack the necessary strength to push prices higher. While short-term rallies are common even in bear markets, the inability to overcome established resistance zones often signals a continuation of the downtrend. Furthermore, macroeconomic factors, such as interest rate hikes and inflation concerns, continue to exert downward pressure on risk assets, including Bitcoin.

It's important to remember that bear markets are characterized by periods of volatility and false rallies. Traders should exercise caution and avoid chasing short-term gains, as these can often be followed by sharp corrections. A more conservative approach, focusing on risk management and long-term investment horizons, may be more prudent in the current environment.

What To Watch

Several factors could influence Bitcoin's price trajectory in the coming weeks. Monitoring macroeconomic data releases, such as inflation figures and interest rate decisions, will be crucial. Further, the response of Bitcoin to future tests of key support levels will provide valuable insights into the strength of the underlying bearish trend. Any significant regulatory announcements could also inject volatility into the market. Finally, observing on-chain metrics, such as exchange inflows and outflows, can offer clues about investor sentiment and potential buying or selling pressure.

The market is currently exhibiting signs of uncertainty, and predicting the exact bottom of the bear market remains challenging. A cautious approach, combined with diligent monitoring of key indicators, will be essential for navigating the current market conditions.

Source: Cointelegraph