Analyst Flags Potential Bear Market Entry for Bitcoin, Targets $56K-$60K Floor

Recent market analysis raises concerns about Bitcoin’s current trajectory, with research indicating the cryptocurrency may have transitioned into bearish territory roughly two months ago. CryptoQuant’s Head of Research, Julio Moreno, conducted an in-depth examination of price movements, employing technical indicators including the one-year moving average as analytical tools.

Price Forecast and Technical Analysis

The analysis suggests that if this bear market scenario unfolds over the coming months, Bitcoin could potentially test support levels between $56,000 and $60,000. This prediction considers both the asset’s historical price behavior and its present valuation dynamics. With Bitcoin currently trading around $91,350, the potential downside represents a significant correction from current levels. Additionally, year-to-date performance shows Bitcoin down approximately 6.93%, reflecting the recent market volatility.

What the Indicators Reveal

Moreno’s research methodology relies on established technical indicators to assess market conditions. The one-year moving average serves as a key metric in determining whether Bitcoin has definitively shifted from its previous bull market narrative into a more bearish phase. This analysis framework suggests that the turning point occurred roughly two months ago, marking a potential inflection point for investors to monitor.

Market Implications

Such analysis underscores the importance of understanding macroeconomic indicators and on-chain metrics in cryptocurrency markets. Whether Bitcoin ultimately reaches the projected floor or finds support at higher levels remains uncertain, but tracking these technical signals provides valuable context for navigating current market conditions. #BTC