Crypto: Bitcoin Relief Rally Faces Headwinds As Bear Market Persists: Analysts

“Even after the recent price rally, fundamental and technical indicators still point to a bear market environment,” said CryptoQuant.

Bitcoin staged a brief relief rally above $74,000 on Thursday, but it has already petered out as analysts predict a persistent bear market will keep momentum subdued.

“Bitcoin is still in a bear market despite the recent rally,” on-chain analytics company CryptoQuant said on Thursday.

The platform’s Bull Score Index, a composite indicator that measures the overall health of Bitcoin (BTC) using a combination of fundamental and technical metrics, remains at 10 out of 100, “deep in bearish territory,” it said.

“Even after the recent price rally, fundamental and technical indicators still point to a bear market environment,” it stated.

Bitcoin briefly tapped a one-month high of $74,000 on Coinbase on Thursday, touching the 50-day exponential moving average, according to TradingView. However, it has already lost more than $3,000, falling back below $71,000 during Friday morning trading.

Nick Ruck, the director of LVRG Research, told Cointelegraph that the crypto market’s recent relief rally came on “renewed risk appetite and ETF inflows,” but cautioned that the advance has “quickly faced headwinds with prices pulling back toward $71,000 amid persistent macro uncertainties and fading momentum.”

While the brief push provided a welcome relief rally amid supportive liquidity conditions, “ongoing bear market dynamics reinforce caution as softer macro signals, like the anticipated slowdown in February nonfarm payrolls, keep cryptocurrencies vulnerable to renewed downside pressure,” he said.

CryptoQuant said that a positive Coinbase Premium has signaled renewed US buying interest, driving the recent rally.

Related: Bitcoin slide slowing, but bear market still in play: Analysts

Source: CoinTelegraph