Bitcoin rises 7% despite bearish market indicators

Bitcoin (CRYPTO:BTC) surged 7% over the past 24 hours, climbing to $82,910, even as key valuation metrics suggest bearish conditions.

On-chain analytics platform CryptoQuant highlighted that Bitcoin’s Bull-Bear Market Cycle Indicator has reached its “most bearish level” of this cycle.

Additionally, the MVRV Ratio Z-score, which assesses whether Bitcoin is overvalued or undervalued, has crossed its 365-day moving average, signaling a loss of upward momentum.

The price increase coincided with broader market stabilisation following recent volatility.

U.S. President Donald Trump’s comments on potential recession fears had previously unsettled markets, but optimism returned after Senator Cynthia Lummis reintroduced the BITCOIN Act, proposing the government acquire up to 1 million BTC over five years.

Despite the price jump, scepticism persists among traders.

Analyst Bitcoin Rachy referred to the surge as a “fake pump,” while BitcoinHyper remarked that such rallies often mislead investors.

CryptoQuant also reported a sharp contraction in U.S. Bitcoin demand last week, with a decline of 103,000 BTC compared to the prior week—the fastest pace since July 2024.

Factors contributing to reduced demand include inflation uncertainty and tariffs imposed by President Trump on February 1. 

Federal Reserve Chair Jerome Powell reiterated on March 7 that interest rates would remain unchanged for now, further dampening investor sentiment.

CryptoQuant warned that if Bitcoin breaks below its current support range of $75,000 to $78,000, it could fall as low as $63,000—a level not seen since October 2024.

However, historical data suggests such drawdowns are consistent with past bull market corrections.

Despite bearish indicators, some analysts remain optimistic.

Swan Bitcoin CEO Cory Klippsten predicted a “more than 50% chance” of new all-time highs before June 2025.

Bitcoin’s current all-time high of $109,000 was achieved in January.

At the time of reporting, the Bitcoin (BTC) price was $81,936.20.