Bitcoin Enters ‘Most Frustrating Phase,’ CryptoQuant Says: A Look Ahead
Bitcoin (BTC) is currently hovering in a trading range between $60,000 and $73,000, entering what analysis platform CryptoQuant describes as “the most frustrating phase of the cycle.”
According to a recent analysis by CryptoQuant contributor MorenoDV, Bitcoin finds itself in a period characterized by increasing uncertainty, with market signals showing more skepticism than conviction.
Bear Market Signals
Three key metrics in the series point to a mentally challenging phase for market participants, particularly Apparent Demand, CryptoQuant Bull Market Cycle Indicator, and Long-Term Owner SOPR.
After the recent sell-off, Apparent Demand initially showed signs of recovery, suggesting that opportunistic buyers were stepping in to take advantage of the recent price decline. However, this uptick was short-lived, quickly retreating into negative territory.
Moreno also emphasized the absence of ongoing buying pressure in the Bitcoin market, which he believes shows that market players are still cautious and hesitant to accumulate BTC at current prices.
The CryptoQuant Bull Market Cycle Indicator, as seen in the chart below, further reinforces this sentiment, as it is currently showing a phase often associated with bear market consolidation.
In addition, the analyst noted that the behavioral forces at play could impact the cost bases of various market clusters. He argues that as short-term holders see losses or switch to long-term holders, the available value of Bitcoin could decrease.
Finally, the Long-Term Owner’s SOPR metric is starting to show that even seasoned investors are starting to see losses, falling below the critical 1 threshold. Historically, this often occurs in the later stages of bear markets when extended uncertainty destroys even the strongest beliefs in asset value.
Bitcoin Eyes $72,000–$73,000 Resistance Level
In the context of geopolitical events, Bitcoin has shown resilience, outperforming gold and traditional stocks during the recent US-Israeli attack on Iran.
Crypto stocks have also benefited, given their ability to be traded at any hour, not blocked by bank schedules. Gabe Selby, head of research at CF Benchmarks, told Fortune:
The 24/7 Crypto structure is increasingly becoming the cutting edge of the asset class. When the Iran conflict escalated over the weekend, the crypto-native markets were the only open space for global risk trading, a structural advantage that traditional markets could not replicate.
Additionally, Bitcoin has seen a positive rise of around 4% following President Trump’s comments suggesting that the war may be over. Trump said, “I think the war is pretty much over,” adding that Iran has “nothing left in the military’s mind.”
While trying to consolidate near $70,000 at the time of writing, Bitcoin is also looking to surpass its recent high in the $72,000-$73,000 resistance area, which was tested without success last week.
Selby stressed that a sustained move above this threshold on high volume could shift the narrative from a short squeeze to a real momentum recovery.
Featured image from OpenArt, chart from TradingView.com
