Bitcoin Approaches Key Bear Market Indicator

Bitcoin has entered a bear market level according to an analysis model by CryptoQuant analyst Darkfost. According to PANews, the model is based on the four-year simple moving average (SMA) of Bitcoin, using standard deviation and SMA multiples to assess Bitcoin's valuation. A higher multiple indicates a deeper overbought condition, while a price closer to the four-year SMA suggests a lower valuation. Currently, Bitcoin's price has fallen into the green zone, nearing the four-year SMA level, which is approximately $57,500. Historically, this level often marks the final stage of each bear market, with BTC prices typically consolidating in this area for several months. Although Darkfost generally does not favor models based on moving averages, he believes this indicator is worth monitoring.