Bitcoin Bear Market: 2021-2022 Weak Market Structure Resurfaces — Details
Over the previous week, Bitcoin (BTC) lastly broke out of a longstanding consolidation part, shifting decisively above the $90,000 mark. During this time, the main cryptocurrency traded as high as $94,700 earlier than a sudden rejection that has since pressured costs to maneuver throughout the $90,000-$92,000 vary. Amid this mini-consolidation, a market analyst with the username OnChain has recognized clear indicators of a structural market weak spot supporting the potential for a bear market.
Bitcoin On-Chain, Technical Indicators Combine To Paint Bear Picture
In a QuickTake post on CryptoQuant, OnChain explains that Bitcoin is displaying early indicators of structural weak spot on the weekly chart, much like what occurred in 2021–2022. The analyst confirms this concept by consulting a mix of price-based technical indicators and on-chain demand metrics to find out the best market state of affairs. These embrace: 4 Anchored VWAPs (2021 ATH, 2025 ATH, third halving, and 4th halving), the SMA50, Realized Price – UTXO Age Bands (6-12 months), and Bitcoin Apparent Demand.
The utility of those indicators to the Bitcoin weekly chart highlights areas of comparable value construction within the current market and in 2021/2022. Notably, in Areas 1, as seen within the chart beneath, it’s noticed that Bitcoin for the primary time concurrently trades beneath the common value because the final all-time high (anchored VWAP), the SMA50, and likewise the realized value of cash held for six–12 months. In the earlier cycle, when BTC first fell beneath all these ranges collectively, it marked the beginning of a broader weakening part, relatively than a quick correction.
In Areas 2, OnChain stories that in each cycles, Bitcoin finds help on the anchored VWAP to its final halving for the second time in every cycle. Following the value correction halt, BTC tried a mini-rebound in 2022 however confronted sturdy resistance in any respect indicators from Areas 1, earlier than slipping right into a multi-month downtrend.
According to the market analyst, the symptoms highlighted in Areas 1 are presently positioned across the $98,000 – $101,000, presenting the subsequent level of main resistance. Meanwhile, all this reported value motion is going on as Bitcoin Apparent Demand continues to crash recommend a visual lack of shopping for stress. OnChain notes one other regarding similarity as Apparent Demand can also be nearing the detrimental territory, equally to 2021-2022.
BTC Market Overview
At the time of writing, Bitcoin trades at $90,500 following a minor value decline of 0.58% within the final 24 hours. Meanwhile, its month-to-month loss stands at 1.9%, indicating the bulls proceed to battle for market management. While there are alarming indicators of rising market weak spot, there are additionally potential optimistic developments. One of which is the Clarity Act, as highlighted by OnChain, the potential impression of which, following enactment, largely stays unknown.
