Bitcoin briefly rallied above $74,000 before retreating, with analysts from on-chain firm CryptoQuant stating the cryptocurrency remains in a bear market. The company’s Bull Score Index sits at 10 out of 100, signaling deep bearish territory. Market observers note the move was likely a short-term relief rally fueled by U.S. buying interest, not the start of a new bull phase.
Bitcoin staged a brief relief rally above $74,000 on Thursday, touching a one-month high. The move has already petered out, with the price falling back below $71,000 during Friday morning trading.
On-chain analytics company CryptoQuant stated the asset is still in a bear market despite the recent price increase. Its Bull Score Index, a composite health indicator, remains at 10 out of 100, which it described as deep in bearish territory.
“Even after the recent price rally, fundamental and technical indicators still point to a bear market environment,” the platform stated. It characterized the current move as likely just a relief rally rather than the start of a new bull phase.
Nick Ruck, the director of LVRG Research, said the rally came on renewed risk appetite and ETF inflows. He cautioned that the advance quickly faced headwinds, with prices pulling back amid persistent macro uncertainties and fading momentum.
Ruck noted that ongoing bear market dynamics reinforce caution. Softer macro signals keep cryptocurrencies vulnerable to renewed downside pressure, according to his analysis.
CryptoQuant said a positive Coinbase Premium has signaled renewed U.S. buying interest, driving the recent rally. Bitcoin spot demand from U.S.-based investors switched from contraction to growth, as the premium moved from deeply negative to its most positive level since October.
Selling pressure from traders and long-term holders has also eased after unrealized losses reached levels not seen since July 2022. Analysts at SwissBlock observed that momentum is flashing a critical shift, exiting peak negative momentum.
