The price of bitcoin is regaining momentum after recent weeks of decline, climbing back above $85,000. This marks an increase of 2.7% over the past week, slowly recovering from previous losses.
Although the broader market remains cautious, it appears that investors are now watching closely to see if BTC can sustain its uptrend or if further corrections are on the horizon.
Bullish indicators for bitcoin appear
Amid the ongoing bitcoin price movement, CryptoQuant analyst Crypto Dan provided insight on the current market structure. In a recent post titled "Past Bull Cycle vs. Current Market," Dan explores the similarities between past market cycles and current conditions.
He stressed that while bear market phases often feel like prolonged downturns, they also provide key opportunities for accumulation. Dan explained that in past market cycles, significant stop-loss moves have signaled large sell-offs leading to prolonged bearish sentiment.
However, no such massive liquidations have occurred in the current cycle and the recent decline in bitcoin remains within the standard 30% retracement range. He noted that while some fear the beginning of a bear market, broader macroeconomic trends indicate that the bull cycle is still intact.
"Past cycles and current markets"
In a bear cycle in the cryptocurrency market, there are many instances of huge moves to cut losses, like the first indicator.
Anyone who looks at it will realise that this is a down cycle and will think that the market has crashed. And the worst part lasts about a year. But the worst part... pic.twitter.com/eQvd7yA2rn
- Crypto Dan (@DanCoinInvestor) March 20, 2025
In addition, the analyst pointed out that short-term uncertainties, such as geopolitical tensions and trade disputes, can influence market sentiment. However, once these factors subside, the market could see a strong rally. The analyst noted:
Market uncertainty is an inevitable element that will always accompany the investment landscape. That's why we analyse and react to the market as we manage risk.
The exchange outflows show a re-accumulation
Another CryptoQuant analyst, CryptoOnCain, provided additional information as of January 2023.
However, no such massive liquidations have occurred in the current cycle and the recent decline in bitcoin remains within the standard 30% retracement range. He noted that while some fear the beginning of a bear market, broader macroeconomic trends indicate that the bull cycle is still intact.
"Past cycles and current markets"
In a bear cycle in the cryptocurrency market, there are many instances of huge moves to cut losses, like the first indicator.
Anyone who looks at it will realise that this is a down cycle and will think that the market has crashed. And the worst part lasts about a year. But the worst part... pic.twitter.com/eQvd7yA2rn
- Crypto Dan (@DanCoinInvestor) March 20, 2025
In addition, the analyst pointed out that short-term uncertainties, such as geopolitical tensions and trade disputes, can influence market sentiment. However, once these factors subside, the market could see a strong rally. The analyst noted:
Market uncertainty is an inevitable element that will always accompany the investment landscape. That's why we analyse and react to the market as we manage risk.
The exchange outflows show a re-accumulation
Another CryptoQuant analyst, CryptoOnCain, provided additional information as of January 2023.
This data suggests that bitcoin is being withdrawn from exchanges at a rapid pace, a sign that investors may be hoarding BTC instead of preparing to sell. Historically, such significant outflows have preceded upward movements as reduced exchange supply tends to create upward pressure on the price.
The analyst noted that a similar pattern was seen in early 2023, when bitcoin reached its lowest price in that cycle before rallying. If this trend continues, it could signify a shift toward stronger market confidence in BTC's long-term potential.