Bitcoin experienced a fleeting rally above $74,000 on Thursday, but the momentum has quickly subsided. Analysts at CryptoQuant indicate the cryptocurrency remains entrenched in a bear market, despite the recent price action.
Their Bull Score Index, which assesses Bitcoin's health using fundamental and technical metrics, remains at a low of 10 out of 100, signaling deep bearish territory. CryptoQuant stated that current indicators point to a relief rally rather than the beginning of a new bull phase.
Nick Ruck, director at LVRG Research, attributed the initial rally to renewed risk appetite and ETF inflows but noted it faced immediate headwinds. He cautioned that macroeconomic uncertainties and fading momentum keep Bitcoin vulnerable to further declines.
Despite the cautionary outlook, a positive Coinbase Premium suggests renewed US buying interest. Bitcoin spot demand from US investors has shifted from contraction to growth, with the Coinbase Bitcoin Premium turning positive. Selling pressure from traders and long-term holders has also eased.