Bitcoin Bear Market in Phase 1 Amid Rising Volatility and Demand Exhaustion
- On-chain analyst Willy Woo states that Bitcoin is currently in Phase 1 of a bear market, which began in Q3 when liquidity broke down.
- Woo highlights that rising volatility confirms the strengthening of the bear trend, with volatility metrics aligning with internal liquidity models.
- Glassnode reports that attempts to reclaim $70,000 since February have faced demand exhaustion, rejecting over $5 million per hour in realized profit.
- During a previous euphoric phase in Q3, profit realization peaked between $200 million and $350 million per hour, contrasting current thin liquidity conditions.
The current state of the Bitcoin market shows significant stress as volatility rises and demand fails to sustain higher price levels. Analysts are closely monitoring these trends as they may indicate further declines.
With Bitcoin struggling to maintain above $70,000 due to demand exhaustion, the outlook remains cautious as it continues to navigate through this challenging phase of the bear market.
