Every bitcoin investor is looking for signs that the market is nearing a bottom, but this week’s price action suggests that we’re not there yet.
A look at the monthly returns for bitcoin (BTC) reveals this evidence, as it suffered a rapid decline that “translated into one of the largest monthly returns in the asset class’ history,” according to a recent Blockware Solutions market intelligence newsletter.
Bitcoin continues to trade within an increasingly narrow trading range that is slowly being compressed to the downside as global economic pressures increase.
Whether prices continue to move lower is a hot topic of debate among cryptocurrency analysts, with the prevailing opinion currently being further to the downside.
Analysts will stay bearish until $45,000 is reclaimed
According to Blockware Solutions, there are various indicators that point to a bearish outlook as long as BTC is trading in the $45,000 to $47,000 range.
This includes Bitcoin starting at $46,200 in 2022, while the 180-week exponential ull moving average, which gives more weight to recent price action, suggests that BTC is declining at the moment and currently sits at $47,166.