"Bitcoin (BTC) sentiment rebounds, but indicators still point to a 'bear market'"

CryptoQuant, an on-chain data platform, said that while investor sentiment in the Bitcoin (BTC) market has recently improved, key indicators still point to a bear-market phase.

On the 16th (local time), CryptoQuant said in a post on its official X (formerly Twitter) that "as BTC prices have rebounded so far this year, market mood has turned somewhat euphoric, but multiple technical and on-chain indicators suggest the bearish trend remains intact."

CryptoQuant said, "BTC is approaching its 365-day moving average on the daily chart," adding that "during the 2022 bear market, rebounds were also capped in that zone." It added, "Current price action shows a pattern similar to the 2022 cycle, when a full-fledged bear market began after forming a top and breaking below the 365-day moving average."

On-chain indicators were also described as unencouraging. CryptoQuant noted that "spot-market demand is declining, and inflows via ETFs do not show a clear increase compared with the same period last year." It also said that "the rising amount of BTC flowing into major exchanges implies a potential expansion of selling pressure."

CryptoQuant concluded that "the BTC rebound seen so far this year is more likely a 'technical rebound within a bear market' than a trend reversal."