Bitcoin's Rally Falls Short of Proving Bear Market Over

Bitcoin has bounced back from its recent dip to $65,000, but market analysts at Glassnode warn that this recovery may not be enough to prove that the bear market is over.

The blockchain analytics firm notes that despite Bitcoin's resurgence, short sellers have largely retreated and U.S. spot ETFs are buying again. However, Glassnode suggests that the rebound has not yet cleared the overhead resistance at $69,000, which would be a crucial test for the market.

According to Glassnode, if Bitcoin clears this level, there's an 'air pocket' all the way to $84,000, making the move higher potentially swift. However, if it gets rejected, attention would likely shift back to the $63,000 area, where about 10% of Bitcoin's supply last changed hands.

Glassnode also notes that while there are some positive indicators, such as exchange inflows slowing down and ETF flows turning positive, the buying activity has been largely limited to crypto wallets owning between 1,000 and 10,000 BTC. Mid-size holders are now selling, and Glassnode emphasizes that 'breadth is the missing on-chain ingredient'.