Bitcoin’s Brief Rally Isn’t The End Of The Bear Market, Analysts Say
Exhausted sellers may be giving Bitcoin some breathing room — but analysts say that’s a long way from a recovery.
Unrealized losses among traders and long-term holders had reached levels last seen in July 2022 before the recent easing. That kind of exhaustion can slow a slide without reversing it.
One signal pointing to easing pressure emerged Friday, when analysts said market momentum appears to be approaching a “critical shift.”
According to their assessment, Bitcoin may be moving out of a phase marked by peak negative momentum — a stage that has often preceded broader changes in market direction. What follows that shift, and how quickly it unfolds, remains uncertain.
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Macro Headwinds Keep A Lid On Any Optimism
February nonfarm payrolls data, expected to show a slowdown, loomed as an added weight on sentiment. Analysts pointed to those “softer macro signals” as a reason cryptocurrencies remain open to fresh downside.
Liquidity conditions had been supportive enough to spark the relief move, but not strong enough to sustain it.
Bitcoin’s brief climb above $74,000 drew attention. The pullback drew more. With the Bull Score Index anchored near the floor and macro conditions still unsettled, analysts are watching for whether US buying demand holds — or fades just like the rally did.
Featured image from Defenders of Wildlife, chart from TradingView
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