After being rejected at $97,924 a week ago, Bitcoin saw a sharp decline, hitting a low of $87,000. Since then, Bitcoin has consolidated between $91,000 and $88,000, reflecting a market that is at a decision point.
At the time of writing, BTC was trading at $88,870, down 1.03% on the daily charts and 6.6% on the weekly charts.
Although Bitcoin’s weak structure has been around for a long time, crypto analysts have remained bullish, citing bearish momentum.
Are Bitcoin Bears Losing Control of the Market?
Interestingly, although BTC’s growth rate differential remained negative, it meant that downward pressure was beginning to diminish. According to CryptoRusThe growth rate differential rose to -0.0009, a significant jump from -0.0013 at the November peaks.
Source: CryptoQuant
When this measure rises, it suggests that sellers are exhausted, while buyers have become more aggressive. As such, selling pressure has decreased and each market is now yielding more profits than before. These market conditions indicate an increasing demand.
Looking at the Bulls and Bears momentum, Bitcoin [BTC] saw a shift, not a break in the trend. So, while the bears remain dominant, the bulls have started to regain their positions, with the BvB EMA normalized rising to 6.19.
Source: TradingView
When BTC broke through $90k, the BvB EMA turned red and fell to -6.05, indicating that sellers were selling aggressively and strengthening the downtrend. Since then, this metric has remained positive for four consecutive days, signaling the bulls’ attempt to push Bitcoin back above $90,000.
Bitcoin has even registered massive buy orders at $89,000, as shown in CryptoQuant’s Spot Taker CVD data.
The aforementioned metric has remained positive over the past seven days as buyers have shown strong demand at $89,000, aiming to rise to $90,000.
Source: CryptoQuant
If they keep this bullish momentum going, this demand zone will give BTC a new lead.
However, from now on, tThese market conditions suggest that BTC’s momentum is in a cooling phase after a period of intense selling pressure.
With a weakened downturn and buyers reactivating their participation, market pullbacks tend to be shallow, creating strong recovery potential.
Battle for control of BTC
Although bulls have attempted to recapture the market, their efforts have proven futile as demand has remained insufficient for a trend reversal.
As a result, bears have proven stubborn for a bullish taker. In fact, Bitcoin’s SMI Ergodic Indicator (SMII) made a bearish crossover and fell deeper into bearish territory.
Source: TradingView
When this momentum indicator turns negative, it indicates a strong downtrend and a high probability of continued weakness. So if sellers fend off the latest bull attempt, BTC could fall to $86,270.
Likewise, if bulls maintain the current momentum, the Future Grand Trend signals a recovery from the current skid and bounces towards $93,000.
Final thoughts
- Bitcoin’s Growth Rate Difference metric signals a market in a cooling phase as seller exhaustion begins.
- BTC buyers have put up a demand wall at $89,000, while expecting another jump to $93,000 despite continued bearish risk.