Bitcoin may finally be entering the last stage of its bear market. CryptoQuant analyst Darkfost has identified a rare on chain signal that has appeared before every major Bitcoin rally.
With Bitcoin staying above key support even after heavy selling, investors are now watching for the next big breakout.
CryptoQuant Flashes Rare Bitcoin Bear Market Signal
CryptoQuant analyst Darkfost says Bitcoin has flashed a rare end of bear market signal, indicating that the market is entering its final bearish phase before a possible trend reversal.
The signal appeared after Bitcoin’s Short Term Holder (STH) cost basis crossed below the Long Term Holder (LTH) cost basis, with a required three day confirmation window now completed.
Historically, this has marked the beginning of the final phase of a Bitcoin bear market before a new bull cycle starts.
But Darkfost says that, “This doesn’t mean the bear market ends the moment the signal fires”, “It simply shows we are entering its final phase.”
Meanwhile,this is the best opportunity for investors who use a Dollar Cost Averaging (DCA) strategy.
Signal Indicate Next Bull Run is Likely to Begin
According to Darkfost analysis, short term holders (STH) are investors who bought Bitcoin within the last six months, while long-term holders (LTH) have held their coins for more than six months.
During the recent price drop, newer investors kept buying Bitcoin, which lowered their average buying price.
Because of this, the STH cost basis dropped from about $112,500 to around $69,000, moving below the active long-term holders’ cost basis and triggering the rare market signal.
According to Darkfost, the next bull run is likely to begin when new investors start buying Bitcoin at higher prices than long-term holders. In the past, this has often been a sign that strong market momentum is returning.
Bitcoin Holds Above $60K Despite Selling Pressure
Nearly three weeks ago, Bitcoin recovered from a low of $57,747 and has continued moving higher.
Even after Michael Saylor’s Strategy sold 3,588 BTC worth about $216 million to fund dividend payments, Bitcoin did not fall below $60,000. This suggests buyers are strongly defending that price level.
Now, analysts are closely watching $67,248, which is the next major resistance. If Bitcoin breaks above this level, it could strengthen the case for a bigger bullish move.
As of now, bitcoin is trading around $63,947 relfecitng a jumpe o 1.4% seen in the last 24 hours.
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