The Bear Case Is Building
Changing On-Chain Patterns, but a Glimpse of Hope Remains
Dear Bitcoiners,
Bitcoin rejected right at the bottom of the resistance zone we extensively discussed last week. Instead of moving into the resistance zone, all we got was a quick spike to $97.9k.
While there is still hope for a bull market continuation (which we’ll discuss further below), the evidence for a bear market is growing. Not only from Bitcoin’s cyclical perspective, but also from the signals of several on-chain indicators. While there are a few exceptions, more and more patterns are starting to look like a bear market and not just a mid-cycle dip.
At Bitcoin Strategy, we’ve been consistent in our approach: to treat Bitcoin as if it’s in a bear market until the key levels are reclaimed.
From a cyclical perspective, the changing on-chain patterns, and some of the worst sentiment on X (Twitter), the case for a bear market is building.
“If it walks like a bear and growls like a bear, it’s probably a bear.”
In this newsletter, we’ll discuss the bearish outlook, and the glimpse of hope that is left.
The Change in On-Chain Patterns
👇 Key insights:
