Two Technical Signals Hinting at a Bitcoin Bear Market

Bitcoin's market outlook continues to deteriorate amid persistent selling pressure, triggered by broader economic uncertainties and a decline in traditional markets. Currently, eight out of ten key on-chain metrics for Bitcoin are bearish, indicating a potential start to a bear market. A notable technical signal is the 'death cross,' where the 50-day moving average falls below the 200-day moving average, suggesting a shift in market momentum and a bearish trend for Bitcoin. Additionally, Bitcoin has seen a significant price drop, trading around $91,600 after recently closing below the 50-week moving average for the first time since October 2023. Analysts report that ongoing fears within traditional markets, particularly linked to overvalued tech stocks, are contributing to this downturn. Speculation in the derivatives market indicates traders are betting on further price decreases, with many opting to buy put options for downside protection. Future recovery hinges on Bitcoin maintaining a price above $100,000 and favorable economic signals from the Federal Reserve, with a breakout above $105,000 seen as essential for reinstating positive momentum in the market.

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