Bitcoin briefly surged above the $74k level this week, marking its highest point in about a month. However, the upward move quickly faded as the market lost momentum, pushing the price back below $71,000 during the next trading session.
The move as a short term relief rally rather than a confirmed recovery. Data from CryptoQuant indicates that broader market conditions still reflect bearish pressure despite the temporary price spike.
Bear Market Indicators Still Dominate
CryptoQuant’s Bull Score Index, which combines multiple technical and on-chain indicators to assess Bitcoin’s market health, currently stands at 10 out of 100. Such a reading places the market deep within bearish territory, suggesting that the recent price rise does not yet signal the start of a sustained bull cycle.
The rally coincided with renewed interest from US investors and modest inflows into Bitcoin exchange-traded funds. Analysts say this demand helped drive prices toward key technical levels, including the 50-day exponential moving average.
Market Outlook and Potential Downside Risk
Despite the brief recovery, analysts warn that macroeconomic uncertainty and slowing market momentum could continue to pressure digital assets. Some indicators, however, suggest selling pressure from traders and long-term holders has begun to ease, which could support gradual stabilization if buying interest continues to improve.
Analysts at SwissBlock said on Friday ;
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.