Bitcoin on the weekly chart is practically motionless, holding around the same levels as in previous weeks. However, a calm price does not necessarily mean a calm market. Rising volumes suggest that an important tug-of-war is beginning between buyers and sellers, which could determine the next direction.
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Bear flag remains in play
The price of bitcoin has been moving inside a bear flag for more than 3.5 months, which from a technical perspective is starting to be quite a long time. Such a pattern often precedes a more significant move, as the market gradually gathers energy and waits for a stronger impulse. That’s why the current stagnation may not be a sign of stability, but rather preparation for the next decisive phase.
From a historical perspective, bitcoin formed final bottoms approximately in four-year cycles, which were mainly related to halving and investor expectations. If we were to stick to this pattern, it’s still too early to state definitively that a new bull trend has already begun. Short-term bounces can look very convincing in a bear market, but without clear confirmation they remain more of a risky signal than proof of a reversal.
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Price bottom must be confirmed by volumes
One of the main clues when looking for a bottom is trading volume. A strong volume spike often shows that capitulation by weaker investors has occurred in the market and that the asset is starting to be taken over by stronger hands. However, it’s important that high volumes don’t come alone. The ideal scenario usually includes a sharp flush-out, significant activity, and a subsequent quick return of price back up.
Until we see similar confirmation in the chart, every bitcoin rally needs to be approached cautiously. The current cycle differs from previous ones and euphoria was not as visible in the BTC price itself, but it partially shifted into massive creation of new cryptocurrency projects. The market has changed as a result, yet the fundamental question remains the same: can bitcoin show real capitulation and a return of strong demand, or has the bear trend not yet ended? This development will also be closely monitored in the coming weeks by analysts and investors on the BITmarkets platform.
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