Bitcoin Faces Deeper Bear Market Risk as Rebound Stalls and Losses Mount
Bitcoin Faces Deeper Bear Market Risk as Rebound Stalls and Losses Mount
Both articles from Cointelegraph highlight Bitcoin's precarious market position. One reports that Bitcoin's price rebound stalled at $103,000, with a significant 30% of its supply now 'underwater' due to unrealized losses as prices fell below $100,000. The other outlines critical conditions Bitcoin must meet—holding above its 200-week EMA, awaiting the Fed's quantitative easing, and a return of US liquidity—to avert a deeper bear market. The overall outlook suggests immediate downside risk unless key technical and macroeconomic factors align positively, indicating a challenging period ahead for the cryptocurrency.
Bitcoin's Price Rebound Stalls, 30% Supply 'Underwater'
Bitcoin's unrealized losses reached nearly one-third of the supply, even before BTC price fell to multimonth lows below $100,000. The price rebound stopped at $103,000, indicating significant resistance and continued selling pressure. This development suggests a challenging period for investors holding at higher price points, with a substantial portion of the market currently experiencing losses, signaling a bearish short-term outlook.
Conditions for Bitcoin to Avoid a Deeper Bear Market
To prevent a further slide into a deeper bear market, Bitcoin must satisfy three crucial conditions. Firstly, it needs to sustain its position above its 200-week Exponential Moving Average (EMA), a key long-term support indicator. Secondly, the market awaits a potential 'stealth quantitative easing' from the Federal Reserve, which could inject liquidity. Lastly, a return of robust US liquidity post-shutdown is deemed essential. Failure to meet these criteria could lead to extended downward pressure on Bitcoin's price, underscoring the current fragility of the market and the urgent need for favorable macroeconomic shifts.