Bitcoin (BTC), the largest cryptocurrency, has officially entered a bear market. However, while network activity analysis indicates prolonged negative trends, there are mixed signals for bulls.
Bitcoin's Network Indicators Signal a Bear Market
A Bitcoin (BTC) network activity indicator points to a bear market, as shared by Julio Moreno from CryptoQuant. The negative metrics have gone beyond the trendline, similarly observed last in late 2021.
Macroeconomic Tensions and Their Impact
Bitcoin (BTC) derivatives contracts' funding rates have dropped below zero, a mechanism used to balance short and long positions on exchanges. This shift is seen as a mixed signal for traders, potentially leading to price increases as seen in past cycles.
Financial Indicators and Market Expectations
Bitcoin (BTC) is trading at $84,700, up 0.89% over the last 24 hours, with the market index also up by 0.49%. Despite the bear market signs, market activity remains strong, hinting potential positive movements.
The analysis of network and financial indicators reveals that Bitcoin (BTC) is in a challenging phase during the bear market. However, existing signals offer hope for potential positive changes.
