Bitcoin (BTC) Is in a Transitional Phase, According to CryptoQuant Analyst CryptoHell

Bitcoin has long been characterized by its cycles of bull and bear markets, each marked by the trajectory of its price movements. However, the crypto appears to be in a transitional phase

Bitcoin has a history of bull and bear markets, each characterized by the direction of its price movements. However, a CryptoQuant analyst known as CryptoHell believes that the crypto is currently in a transitional phase.

Recently, CryptoHell shared some insights into Bitcoin’s current market cycle, providing investors with some key indicators to monitor during this period.

Further Reading Is Bitcoin Heading For A Bear Market? Analysts Discuss Price Struggles

Understanding The Bitcoin Bull-Bear Transition Phase

In a recent post on the CryptoQuant QuickTake platform, CryptoHell revealed that the Bitcoin bull-bear market cycle indicator from CryptoQuant has been a “reliable instrument” for mapping out the recurring trends of the crypto.

According to the analyst, the cycle alternates between overbought phases, termed “Overheated Bull,” and oversold phases, referred to as “Extreme Bear.”

To provide more context, CryptoHell explained the following:

The bull-bear market cycle indicator from CryptoQuant depicts the recurring cycles of Bitcoin in recent years, highlighting movements between overbought phases (Overheated Bull) and oversold phases (Extreme Bear). Each bull market phase is followed by a bear market, demonstrating how market volatility and sentiment influence Bitcoin’s price.

The analyst went on to say that as of 2024, Bitcoin is in a “transitional phase” as it shows signs of recovering from the previous bear market. However, the analyst notes that it is unclear whether Bitcoin will enter a full-blown bull market.

Is Bearishness Over?

In another QuickTake post, CryptoHell highlighted an interesting point about Bitcoin, mentioning that while there still seems to be short-term selling pressure in Bitcoin, as the data shows, some fundamental indicators present relatively positive signs for the Bitcoin market.

For example, selling pressure from miners and long-term holders is still low, suggesting that these market participants are not contributing significantly to the current volatility.

However, sentiment from institutional investors and the broader US market appears weak. This indicates that the overall mood among larger investors is not overly bullish at this stage.

According to the analyst, technical indicators further support the idea of a potential short-term peak. The Stochastic indicator, which is used to identify overbought and oversold conditions, indicates an overbought state, suggesting the possibility of a market correction.

Further Reading

Bitcoin Price at Risk of Further Downside: Will Bears Tighten Grip?

According to the analyst, volatility will persist as the market adjusts, adding:

Investors should be cautious, as several sources show profit-taking and selling pressure. However, if selling pressure decreases and market sentiment improves, there is still potential for a longer-term bullish trend.

So far, Bitcoin seems to be seeing a rebound, with its price suddenly rising 5.3% in the past day, reclaiming the psychological price level of $60,000. At the last check, the asset was trading close to the $61,000 mark with a current trading price of $60,905.

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