Bitcoin bear market persists, further downside possible

Bitcoin remains in a bear market as momentum indicators stay negative. Analysts warn the bottom may not be in, with further declines possible. Caution is advised for traders.

Recent analyses from multiple sources indicate that Bitcoin remains in a bear market. Key momentum indicators, such as CryptoQuant’s Cycle Momentum signal, are still below the neutral zone. The indicator has reached historically low levels around -30, which have previously marked major support areas. However, analysts emphasize that a true trend reversal requires both a bullish price pattern and the indicator breaking above neutral. Currently, Bitcoin is trading near $64,100, down nearly 27% year-to-date and well below its all-time high. Some analysts warn that the final market bottom may not have been reached, with potential for further declines and a possible large-scale capitulation event. While some bullish signals exist, such as oversold technical indicators, the lack of a retest of the realized price and continued negative momentum suggest the bear cycle could persist. Traders are advised to remain cautious and closely monitor support levels and momentum indicators for signs of a genuine reversal.