Bitcoin has experienced a 7% increase over the last 24 hours, even as its valuation indicators suggest a bearish trend and recent demand from the US has dipped.
According to an analytics platform, “All Bitcoin valuation metrics point to a bearish phase,” as noted in a market report from March 11.
Demand Declining at Record Pace
The analytics platform reported that its Bitcoin Bull-Bear Market Cycle Indicator is currently at its “most bearish level” of this cycle. Additionally, Bitcoin’s MVRV Ratio Z-score—a critical indicator that helps evaluate whether Bitcoin (BTC) is overvalued or undervalued—has fallen below the 365-day moving average, “signaling a loss of momentum in the upward price trend.”
At the time of writing, Bitcoin is valued at $82,910, having risen from a 24-hour low of $79,356, as per available market data.
The Bitcoin Bull-Bear Market Cycle Indicator is at its “most bearish level” during this cycle.
Bitcoin surged 7.5% in the last day as the US market stabilized on March 11, following a drop the day before when the US President did not dismiss the possibility of an impending recession.
A significant portion of Bitcoin’s rise can be attributed to Senator Cynthia Lummis’ reintroduction of the BITCOIN Act, which suggests that the US government purchase 1 million BTC over a five-year period.
As of this publication, Bitcoin is trading at $82,910.
Nonetheless, some traders remain skeptical that the downward trend has ended.
A crypto analyst expressed doubt in a March 11 post, asking, “Is this just a fake pump?” Similarly, a crypto trader mentioned, “Every pump feels like the beginning. This is how the market extracts your money.”
Additionally, the analytics platform reported that US Bitcoin demand dropped by 103,000 BTC last week compared to the prior week, “indicating the quickest rate of decline since July 2024.”
Bitcoin Demand in “Contradiction Territory”
The analytics platform attributed the recent decline in US Bitcoin demand to uncertainties surrounding inflation rates and tariffs imposed by the US President on February 1. On March 7, the Federal Reserve chair emphasized his lack of urgency in altering interest rates.
“Bitcoin demand remains under pressure, with larger investors slowing their accumulation of Bitcoin, and spot ETFs in the US shifting to net sellers of Bitcoin,” the firm explained.
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Bitcoin has dropped 14% over the past month. The analytics platform noted that this drawdown is not “unusual in terms of magnitude, as similar corrections have occurred in past bullish markets.”
However, they cautioned that if Bitcoin breaks below its current support level ranging from $75,000 to $78,000, it could target as low as $63,000, a threshold not reached since October 14.
The CEO of Swan Bitcoin recently provided his outlook, stating there is “more than a 50% chance we will observe all-time highs before the end of June this year.” Bitcoin’s peak of $109,000 was reached on January 20.
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This article does not offer investment advice or recommendations. All investment and trading activities carry risk, and readers should perform their own research before making decisions.