💰💰Analyst Firm Claims Bitcoin Could Be Entering a Bear Market: Shared Three Key Scenarios 💰💰

Cryptocurrency analysis firm Alphractal has made a cautionary assessment of Bitcoin’s current state, suggesting that the world’s largest cryptocurrency could be entering a bear market phase.

In a recent statement, Alphractal highlighted the importance of the Spent Output Profit Ratio (SOPR) Trend Signal, which has been a key indicator in determining market trends throughout Bitcoin’s history. The analysis aims to filter out noise and provide clear entry-exit signals by combining SOPR with exponential and simple moving averages (EMA and MA). This combination has played a critical role in determining market cycles since 2015. It has been observed that bull markets, in particular, are shortened, while bear markets are extended.

Alphractal notes that the data for 2024 exhibits an unusual pattern. According to the company, only one SOPR signal has broken the critical 1,015 level, which is usually a sign of a long bear market. This contrasts with previous cycles where similar bearish phases were observed. According to the report, the current SOPR pullback has led to three possible scenarios:

All-Time High: While analysts argue that Bitcoin could reach a new record price similar to the November 2021 peak, recent data suggests a bear market reversal.

Bear Market Already in Play: A second SOPR signal may not emerge, suggesting that the bear market could begin as early as March 2024.

Optimistic Reaccumulation: The metric could rise again, signaling a reaccumulation phase reminiscent of the 2019-2020 period. This scenario could see Bitcoin reach new all-time highs, but it could take several months for this development to happen.