Bitcoin briefly broke through $74,000 on Thursday, sparking brief market optimism, but quickly retreated and is currently fluctuating around $71,000. Several analysts point out that despite a short-term technical rebound, the overall market remains deeply entrenched in a bear market, with continued weakness in upward momentum.
The Bull Score Index on the CryptoQuant platform is currently only 10/100, in an extremely weak range. This index comprehensively assesses Bitcoin's fundamental and technical indicators, and the results show that even after the recent price rebound, there has been no significant improvement in mainstream indicators, and market sentiment has not fundamentally reversed.
Nick Ruck, Director of LVRG Research, told Cointelegraph that the rebound was mainly driven by increased risk appetite and inflows into Bitcoin spot ETFs, but lacked sustained support. He pointed out that macroeconomic uncertainty remains severe, especially market expectations for a slowdown in February's non-farm payroll data, which exacerbates the downside risks for crypto assets.
Looking at trading data, although short-term selling pressure has not subsided, there are signs of a recovery in spot demand from US investors. The Coinbase Bitcoin premium indicator has rebounded from a deep negative value in early February to its highest level since October last year, indicating that some institutional and individual investors are gradually resuming their willingness to enter the market.
Bitcoin's Brief Rally Stalls, Analysts Say Bear Market Structure Remains Intact
Bitcoin quickly retreated after a brief surge, and market sentiment remains weak. Although ETF inflows drive short-term demand recovery, fundamentals and the macro environment still suppress upside potential, and the bear market has not ended.