Bitcoin is experiencing an upward movement, yet this recovery seems to be built on a shaky foundation. The leading cryptocurrency is currently testing crucial resistance levels, amidst increasing doubts reflected in on-chain data.
A variety of indicators are signaling bearish trends that could potentially weaken the existing upward momentum before any significant breakout occurs.
Current Situation for Bitcoin Holders
The percentage of short-term holders making a profit has fallen below 50%, which Glassnode identifies as a “sign of bear markets.” This statistic indicates that most recent buyers of Bitcoin find themselves at a loss with their investments.
Historically, demand tends to remain low when the supply of short-term holders in profit dips beneath this vital level.
The risk appetite among these investors usually stays subdued until this figure rises above 50%. Consequently, new capital inflows are unlikely to see substantial growth while prospective buyers are facing losses.
A sustained market rebound would be necessary first to turn around this indicator and restore confidence among short-term investors regarding Bitcoin’s potential for growth.
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Bitcoin STH Supply In Profit. Source: Glassnode
The Chaikin Money Flow (CMF) indicator is showing signs of bearish divergence compared to Bitcoin’s price. While $BTC continues reaching higher highs, CMF reflects higher lows — indicating that selling pressure may be building underneath the surface.
This divergence implies that actual capital outflows have not been fully captured by current prices yet.
When such bearish divergences occur with CMF indicators, they often resolve through price corrections rather than recoveries in the indicator itself. The present situation suggests that Bitcoin might be enduring more selling pressure than its price movements suggest it should face.
This concealed pressure could lead to a significant decline in prices during upcoming trading sessions.
Bitcoin CMF. Source: TradingView
$BTC Price Breakout Challenges Ahead
Currently priced at $70,724, Bitcoin struggles below the $71,529 resistance level which has consistently rejected attempts over the last six weeks. Each unsuccessful effort against this ceiling has reinforced its role as an essential barrier. A definitive breakout remains unattainable despite numerous tests against it.
Bearing negative signals from on-chain metrics suggests another rejection at $71,529 may occur instead of a successful breakout..A failure at this point could instigate a correction towards $65,776—similar outcomes were observed during previous comparable scenarios where unaccounted-for selling pressures accelerated declines... .
Bitcoin Price Analysis Source: TradingView
An alternative scenario involving shifting from selling back towards accumulation presents constructive possibilities ahead if investors pivot and begin buying aggressively; thus allowing bitcoin clear past $71,.529 and close above $74,.000 thereby invalidating any prevailing bearish narratives while paving pathways toward hitting milestones around$75,,000!<//P>.
The post titled “Bitcoin Establishes New Hallmark Of Bear Markets” was originally published on BeInCrypto.