Bitcoin Bull Market 'Falls Asleep' After 700% Run, Analyst Warns
News Summary
After surging 700% from late 2022 lows to a record high of around $124,500 earlier this year, Bitcoin is now hovering near $110,000 and trading in a tight range, leading to questions about whether its bull market has 'fallen asleep'. Crypto analyst Ali Martinez noted that Bitcoin's dominance is starting to crack, mirroring conditions seen ahead of the 2021 peak. He flagged multiple warning signs, including an RSI bearish divergence, a MACD crossover, and a possible breakdown if BTC loses $108,700 support. On-chain signals add to the bearish case, with the MVRV Momentum indicator flipping negative for the first time this cycle, marking what Martinez described as a potential macro momentum reversal. Key downside levels include $108,700, $104,500, $97,000, and potentially $60,000 if selling deepens. Martinez also highlighted that Bitcoin supply in profit is showing early signs of a downtrend, reinforcing the view that the top may already be in. For bulls to remain in control, he stated Bitcoin must hold $108,700 and see the MVRV recover with a golden cross.
Background
Bitcoin (BTC), the largest cryptocurrency by market capitalization, is known for its significant price volatility. After dipping to lows of $15,000 in late 2022, it experienced a robust rally through 2023 and early 2025, reaching an all-time high of approximately $124,500. This rapid ascent garnered substantial attention from both retail and institutional investors, but its inherent volatility makes market tops and bottoms notoriously difficult to predict. Analysts frequently employ a combination of technical indicators and on-chain data to attempt to identify turning points in market cycles.
In-Depth AI Insights
What are the deeper implications of Martinez's analysis for risk sentiment in the current crypto market? Martinez's analysis exposes a potential underlying fragility within the market, even after a significant bull run. - His warning could prompt institutional investors to re-evaluate their short-term Bitcoin exposure, especially amidst broader macroeconomic uncertainties. - Indicators like RSI divergence and MVRV momentum reversals typically signal a topping process, suggesting market sentiment may be shifting from FOMO (Fear Of Missing Out) to profit-taking. - This isn't just a Bitcoin-specific signal; it could foreshadow a broader cooling of risk appetite across the cryptocurrency market, potentially leading investors to rotate into safer or more reasonably valued assets. How do the combined bearish technical and on-chain signals challenge Bitcoin's long-term structural growth narrative? While long-term investors often focus on Bitcoin's potential as