Bitcoin Bull-Bear Cycle Indicator Turns Bullish as Price Stabilizes at $60K

The Bitcoin bull-bear market cycle indicator has recently shifted to a bullish position after Bitcoin saw a price dip below $50,000, marking its first bearish signal since January 2023.

Current Market Observations

The bull-bear market cycle indicator, which assesses investor sentiment, has switched to reveal bullish conditions after a three-day period of bearish signals due to Bitcoin’s recent price drop to levels not seen since February.

According to CryptoQuant’s founder aKi Young Ju, “Most Bitcoin on-chain cyclical indicators that were hovering near the borderline have now shifted back to signaling a bull market.”

Another notable voice in the market, the pseudonymous trader PlanB, corroborated this sentiment by stating, “Bitcoin is still in a bull market.”

Ju went on to comment that Bitcoin was undervalued for only a brief three-day period. This analysis comes in the wake of Bitcoin’s drop to $49,751 on August 5, an event now referred to as “Crypto Black Monday,” marking its first fall below $50,000 since February.

Following this incident, Bitcoin traded under the critical threshold of $60,000 until August 8, based on CoinMarketCap data.

Price Trends and Recent Developments

As of the latest update, Bitcoin is priced at $60,732, experiencing a slight decrease of 0.35% over the past week.

Prior to the recent shift, the bull-bear cycle indicator had not registered a bear signal since January 2023, shortly after the FTX collapse. Furthermore, the Crypto Fear and Greed Index also recorded an “Extreme Fear” rating of 17 on August 6, the lowest since the FTX incident. However, this score has since recovered, reaching a “Neutral” level of 48.

Some Bitcoin traders suggest that the swift market reversal could be indicative of a bear trap, a tactic wherein experienced traders sell Bitcoin methodically to intentionally decrease its price and attract short-sellers.

Diverging Analyst Opinions

Market analysts are divided regarding Bitcoin’s future trajectory. Some analysts draw parallels between Bitcoin’s recent downturn and historical trends preceding bull markets. For instance, Markus Thielen, head of research at 10x Research, mentioned a target for Bitcoin prices to ideally fall into the low $40,000s for optimal timing of the next bull market entry.

In an earlier report by Ark Invest, the firm highlighted that critical price supports for Bitcoin lie at $52,000 and $46,000.

Additionally, veteran trader Peter Brandt noted that Bitcoin’s recent decline mirrors patterns observed during the 2015-2017 halving bull market cycle, suggesting a potential bull run on the horizon.