Bitcoin at $73,000: Bear Market Rally or New Bull Run? CryptoQuant Analyst Weighs In

Bitcoin's recent surge past $73,000 has ignited bullish sentiment in the market. However, leading on-chain data analytics firm CryptoQuant offers a contrasting perspective. Julio Moreno, Head of Research at CryptoQuant, suggests that this rally is not the start of a new bull market but rather a short-term rebound within a broader bear market.

According to their team's on-chain data monitoring, the current Bitcoin recovery is primarily driven by a resurgence in spot demand, renewed interest from U.S. investors, and reduced selling pressure from both short-term and long-term holders. However, these factors have not yet altered the overall structural weakness of the market.

CryptoQuant's Bitcoin Bull Score Index currently stands at only 10/100, far below the bull market threshold, indicating a lack of strong technical support. Moreno emphasizes that all signals, from fundamentals to technical indicators, still point to a bear market environment. If the price continues to rise, the next key resistance range is expected to be between $79,000 and $90,000. The $79,000 level represents the lower edge of the average holding cost for investors during the bear market, while $90,000 corresponds to the overall realized price low from the rebound at the beginning of the year – an area that repeatedly blocked price breakouts in January and has significant resistance. In summary, the current market movement is better viewed as a technical correction within a bear market rather than a trend reversal. Investors should remain cautious and pay attention to substantive changes in subsequent trading volume and on-chain fund flows.