The past week ended on a high note for cryptocurrency markets, with a noticeable uptick in prices largely due to a temporary halt on trade tariffs easing tensions. Despite this uptick, the atmosphere remains largely bearish.
Market analysis by CryptoQuant has flagged that Bitcoin (BTC) is currently experiencing one of its least optimistic periods since November 2022. The platform’s on-chain indicators suggest that a robust rally might not be on the horizon anytime soon.
### Bitcoin’s Price Bounces After Tariff Suspension
The week kicked off with intense volatility, leading to a significant sell-off that saw Bitcoin’s price plummet from $84,000 to a five-month nadir of $74,000. Ether (ETH) also suffered, dropping to its lowest since March 2023 at $1,385, following new tariffs imposed by China and the EU against the US.
However, a mid-week announcement from US President Donald Trump introducing a 90-day tariff suspension for all nations except China caused a swift turnaround. This pause led to a noticeable rally in the crypto sector, with Bitcoin notably bouncing back after nearing its 365-day moving average—a level that CryptoQuant notes has historically acted as a strong support in similar market conditions.
At present, Bitcoin seems to have stabilized around $83,460, finding support at its yearly average of $76,100. A drop below this could herald a bearish market phase.
### Persistent Bearish Market Sentiment
Even with the temporary tariff reprieve improving market sentiment, Bitcoin saw its most significant pullback of the cycle—a 27% correction. According to CryptoQuant’s analysis, this indicates that the cryptocurrency is still navigating through one of its most pessimistic phases in over two years.
An earlier insight shared highlighted the Bull Score Index’s evaluation of Bitcoin’s investment climate using a mix of on-chain and market metrics. This tool has recently registered a low score of 10, maintaining that a figure below 40 typically signals weak investor confidence and the potential onset of a bear market.
Despite the general bearish outlook, with Bitcoin’s price maintaining above its yearly average, there’s a glimmer of bullish activity. However, this stands as an exception, with the majority of indicators remaining bearish since late February when Bitcoin was trading at $96,000.
Analysts are now eyeing resistance levels at $84,000 and $96,000, forecasting potential challenges for Bitcoin’s upward trajectory in the near future.
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