Although Bitcoin has recently recaptured the $80,000 mark and is showing signs of recovery, an analysis suggests that this is merely a natural rebound after a sharp drop and it is still too early to judge it as an entry into a bull market. On-chain analyst Axel Adler Jr. explained, “Bitcoin hit a high near $125,000 in the last cycle, then plummeted to the $60,000 level, and has since shown a recovery trend. However, this rebound does not necessarily mean the start of a new upward cycle.” He added, “Numerous on-chain indicators suggest that Bitcoin’s bottom formation is not yet complete. In particular, a clear ‘capitulation phase’ has not yet appeared in the spot market.” He also emphasized, “If sufficient evidence supporting a bullish reversal is not confirmed across all areas, including on-chain indicators, sustainable spot demand, and easing downside pressure from the supply side, then it is still too early to judge a bullish reversal.”
