3 Key Signs That Bitcoin Is Heading Forward To A Bear Market As Massive Volatility Looms

The most pressing question facing Bitcoin investors over the past few weeks is whether the current consolidation will continue to rise or fall. Expectations that Bitcoin will pull back from its current range have recently strengthened, with one analyst focusing on three technical indicators that lead the analyst to believe that Bitcoin’s outlook “looks bearish.”

“If I’m honest with myself, then I have to admit that this looks bearish,” he said of the signs.

There are key signs that Bitcoin's current volatility may be lower

The three indicators shared by well-known analyst Relevant People are as follows: Bitcoin has formed a dome after reaching a peak of $10,400 earlier this month. The analyst pointed out that the round top pattern last appeared in February this year, when Bitcoin had not yet fallen to $3,700; sales volume is greater than buying volume, which has pushed down prices; Bitcoin is currently trading below the local control point.

Bitcoin Price Analysis Chart Source: Relevant

On-chain data confirms this negative outlook. Blockchain analytics firm IntoTheBlock reported that three out of seven of its core signals for Bitcoin are currently “bearish” as of June 20. The other four reports are all “neutral,” giving Bitcoin a “largely pessimistic outlook.”

Bitcoin Core Signals

Here are three signals currently suggesting a pullback in Bitcoin prices: Network growth: “Momentum signals that give the true growth pulse of the cryptocurrency’s underlying network” by measuring the number of new addresses and other metrics; In the money: changes in profitability for Bitcoin investors; Large transactions: the number of transactions worth more than $100,000.

Bitcoin investors should accumulate for the long term

Traders and short-term investors are divided over what happens next, but fund managers and other prominent figures in the industry are reminding bitcoin investors to be patient.

However, Travis Kling, founder of hedge fund Ikigaii Asset Management, recently wrote: “A lot of people are asking why the Bitcoin ratio isn’t higher now. If you own Bitcoin, be patient. Bitcoin has historically been transferring wealth from impatient hands to patient hands. Just be patient. Central banks are doing all the work for you as we speak. Just be patient.”

Similarly, Matt D’Souza, CEO of bitcoin mining startup Blockware Mining, recently shared that bitcoin investors should accumulate for the long term rather than trying to bet on every short-term fluctuation.

“There is no relevance in buying between $8,500 and $9,300 when our goal should be to capture the next 18-36 month market cycle (which could be $20,000, $50,000 or $100,000+),” he said. “Short-term scalping is a distraction that will cause you to miss an important step.” (Baijiahao)