This bitcoin bear market is different with 'uniquely pessimistic' traders limiting downside, K33 says

Bitcoin failing to break above its key moving average around $83,000 sparked renewed fears that another brutal leg lower is coming. But this cycle, K33 Research argued in a Tuesday report, is behaving very differently from the crashes of 2014, 2018 and 2022 crashes that happened after similar rejections.

This bitcoin bear market is different with 'uniquely pessimistic' traders limiting downside, K33 says. Bitcoin failing to break above its key moving average around $83,000 sparked renewed fears that another brutal leg lower is coming. But this cycle, K33 Research argued in a Tuesday report, is behaving very differently from the crashes of 2014, 2018 and 2022 crashes that happened after similar rejections. In those periods, bitcoin rallied aggressively back toward the 200-day moving average before quickly rolling over again. Those rebounds were fueled by rapidly rebuilding leverage and bullish positioning that eventually collapsed under their own weight. "The current slow grind has not produced such a dynamic," wrote K33's head of research Vetle Lunde. "Derivatives data instead points to uniquely pessimistic sentiment." Extreme caution Bit...