Crypto: Bitcoin Slide Slowing, But Bear Market Still In Play: Analysts

Compressed volatility, strengthening ETF flows and a diminished Coinbase discount “are not characteristics of a market accelerating into a fresh leg lower,” said 10x Research.

Bitcoin’s recent price behavior could indicate that crypto selling pressure has begun to wane — though analysts warn there are not yet signs of a reversal from a bear market.

“Bitcoin failed to accelerate lower on risk-off headlines, a signal that downside pressure may be losing momentum,” said 10x Research in a market update on Tuesday.

The analysts noted that Bitcoin (BTC) was reclaiming the 20-day moving average near $68,500, and Bollinger Bands were tightening, with conditions “forming for potential range expansion.”

BTC returned to just above $70,000 on Coinbase in late trading on Monday but had retreated to $68,400 at the time of writing, according to TradingView.

The $62,500 level has held on three separate tests, “reinforcing it as meaningful support,” the analysts said.

At the same time, “bullish divergences are emerging,” with both RSI [relative strength index] and stochastic indicators trending higher, “early signs that momentum may be stabilizing even within a broader bearish structure.”

The analysts concluded that the evidence “points to a meaningful tactical shift, but not yet a confirmed structural turn.”

Volatility is compressing, ETF flows have strengthened, and the Coinbase discount has disappeared, “these are not characteristics of a market accelerating into a fresh leg lower,” they said.

Related: Crypto analyst says Bitcoin selling pressure is nearly exhausted

Source: CoinTelegraph