Despite Bitcoin's recent rally above $80,000, market experts warn that the cryptocurrency has not yet escaped its bear market phase. A prominent analyst known as Bee outlined three critical rules that historically mark the boundaries of Bitcoin's bear cycles, suggesting further declines could still lie ahead.
According to Bee, a bear market lasts at least 350 days, the price inevitably touches the 350-day moving average (MA 350), and the downturn typically extends beyond general expectations. Currently, Bitcoin remains above $80,000 but has yet to reach its MA 350 level around $47,000, which Bee identifies as a vital marker for the market bottom.
Bee’s analysis indicates that while Bitcoin is more than halfway through its bear cycle, it could still experience a significant drop—potentially down to approximately $46,000—before a sustainable recovery begins. Until the MA 350 is touched, the analyst expects bearish pressure to dominate, with a “flush” or sharp sell-off likely forthcoming. Only when this threshold is crossed will Bee adopt a bullish stance.
Additional factors weighing on Bitcoin include recent inflation data and geopolitical tensions, such as the stalled U.S.-Iran peace talks, which analysts say undermine positive market momentum. These elements increase the risk of renewed downward price action despite recent gains.
Another crypto analyst, Colin, recognizes the possibility that Bitcoin's bottom may already be in but remains cautious. He predicts that if this is the case, Bitcoin could still retest lower price ranges between $60,000 and $70,000 later this year. On the other hand, Colin remains open to the bear market extending further, suggesting that the longer Bitcoin maintains or exceeds current levels, the less likely a deeper bottom becomes.
As of now, Bitcoin trades slightly below $81,200, signaling persistent volatility as investors weigh the conflicting forces shaping its near term trajectory.