Bitcoin Hits $58,000 But Analysts Warn of Bear Market

Introduction

Early on Thursday, Bitcoin (BTC) hit $58,487, but Julio Moreno of CryptoQuant advises caution. He contends that because investors are taking less risk, Bitcoin is still in a bear market and has moved away from gold.

CryptoQuant's latest analysis shows that the Bull-Bear Market Cycle Indicator has been in a bear phase since August 27, when Bitcoin was at $62,000, suggesting a significant rally is unlikely. The MVRV ratio has also fallen below its 365-day moving average, signaling potential further price correction, similar to trends seen before past declines. Additionally, long-term holders are spending Bitcoin at lower profit margins, indicating weak new demand.

Bitcoin Surges Above $58,000 Amid Positive Market Moves

Early Thursday trade saw Bitcoin (BTC) rise to $58,025 due to increases in Asian and U.S. stock markets. The expectation of a rate cut by the Federal Reserve increased when U.S. inflation data showed that core inflation was higher than 0.3%. In spite of this, after two days of inflows, U.S. spot bitcoin ETFs witnessed $43 million in withdrawals on Wednesday.