Bitcoin Bear Market Isn’t Over as Trend Reversal Lacks Confirmation

Bitcoin’s bear market has yet to end, according to an analysis that said no clear reversal signal has emerged because the cycle momentum indicator remains below its neutral zone.

CryptoQuant Quicktake analyst Gaah wrote on June 22 that Bitcoin is still in a bear market because its cycle momentum indicator has not climbed above zero, the neutral threshold.

The indicator has fallen to about minus 30 points, he wrote. Historically, that level has corresponded to deep decline territory where Bitcoin cycle bottoms formed and has acted as a key support zone.

Still, a move into a deeply depressed range does not by itself confirm a trend reversal. A rebound would be confirmed only if Bitcoin forms a bullish price pattern and the cycle momentum indicator breaks back above the neutral zone, according to the analysis.

The market is nearing signals associated with Bitcoin’s historical bottom range. Even so, investors need to remain cautious because a recovery in buying demand and a momentum shift have yet to be confirmed.