Analyst says Bitcoin is still in a deep bear market zone, with BTC quickly retreating after rebounding to $74,000.

On March 6, it was reported that Bitcoin recently experienced a brief rebound above $74,000, but the upward momentum quickly weakened. Several market analysts pointed out that the current rebound is more likely a phase correction within a bear market rather than the start of a new upward cycle.

CryptoQuant’s latest analysis shows that its “Bull Score Index,” which measures market conditions, remains only at 10 out of 100, indicating a clear deep bear market zone. This indicator combines fundamental and technical factors to assess market health. CryptoQuant believes that even though prices have recently risen, most key indicators still do not signal the restart of a bull market.

Market data shows that Bitcoin briefly reached a high near $74,000 on Thursday and tested the 50-day exponential moving average, but then quickly fell back. By the Asian morning on Friday, BTC had dropped below $71,000, retracing over $3,000 in a short period, indicating persistent selling pressure above.

Nick Ruck, head of LVRG Research, stated that this rebound was mainly driven by increased risk appetite and ETF fund inflows, but macroeconomic uncertainties still pose challenges, making sustained gains difficult. He noted that the market is closely watching the upcoming U.S. February non-farm payroll data; if economic data weakens, it could continue to pressure risk assets.

However, some on-chain indicators are beginning to show positive signals. CryptoQuant pointed out that U.S. spot demand has recently recovered. Data shows that Bitcoin’s price premium in the U.S. market has shifted from deep negative values in early February to a significant positive, reaching a new high since October last year, which is often seen as a sign of renewed capital inflows.

Meanwhile, selling pressure from long-term holders has also eased. On-chain data indicates that after unrealized losses reached a high since July 2022, some investors’ selling activity has noticeably decreased.

Another data firm, Swissblock, analysts noted that market momentum is undergoing a key change. The research team believes Bitcoin may be gradually moving away from its previous negative momentum phase. Such a shift in momentum structure has historically occurred near major turning points in market cycles.

Nevertheless, most analysts remain cautious. Until macroeconomic conditions, capital flows, and market sentiment align clearly, Bitcoin’s short-term trend may continue to fluctuate.