The rise of the leading cryptocurrency above $73,000 is a short-term rebound rather than the start of a new bull market, according to analysts at CryptoQuant.
Bitcoin is still in a bear market despite the recent rally.
Our Bull Score Index remains at 10/100, deep in bearish territory.
The current move is likely just a relief rally, not the start of a new bull phase. pic.twitter.com/bh4O6jQPD6
— CryptoQuant.com (@cryptoquant_com) March 5, 2026
Julio Moreno, head of research at the company, stated that both fundamental and technical indicators still point to a bearish trend.
Former BitMEX CEO Arthur Hayes holds a similar view. He stated that Bitcoin has not yet decoupled from the dynamics of American tech SaaS companies. This supports the theory that the current price increase is merely a temporary rebound, not the beginning of a sustained upward trend.
Hayes believes the market is still in a risk zone and advises investors to remain patient.
The current strengthening of the asset is largely due to reduced selling pressure. In the spot market, the demand deficit has decreased from -136,000 BTC to -25,000 BTC. Meanwhile, interest from American investors has grown: the premium on the Coinbase exchange turned positive for the first time since October last year.
Speculators and long-term investors have also reduced sales. Traders’ unrealized losses have reached July 2022 levels—at such values, holders are usually unwilling to close positions at a loss. The volume of sales by long-term holders fell from 904,000 BTC in November to 276,000 BTC.
The Return of the Whales
The institutional sector is also showing signs of revival. Bloomberg analyst Eric Balchunas noted that a recent daily inflow of $500 million nearly offset the outflow from spot Bitcoin ETFs recorded since the beginning of the year. Positive dynamics were observed in 10 of the 11 leading funds.
Another half bil day, with 10 of the 11 OGs getting love. YTD hole almost closed. Since Iran strike bitcoin and rise of geopolitical fear btc is up 12% and gold is down. So does that mean gold has failed as a safe haven and may be devoid of any purpose and vice-versa for btc? pic.twitter.com/29uHoBYaty
— Eric Balchunas (@EricBalchunas) March 5, 2026
Balchunas also highlighted that the leading cryptocurrency has gained about 12% amid Middle East tensions and rising geopolitical risks, while the price of gold has decreased.
However, the analyst cautioned against hasty conclusions that the precious metal has lost its status as a safe-haven asset and that Bitcoin is driven solely by geopolitics. He noted that other factors, such as profit-taking, shifts in investor sentiment, and weakening institutional flows, also influence short-term market movements.
Despite local positives, the Bitcoin Bull Score index remains at 10 out of 100, indicating ongoing market weakness.
If growth continues, Bitcoin will face resistance at $79,000 and $90,000, Moreno stated. These levels correspond to traders’ realized prices—similar values have already halted the coin’s rally in mid-January.
At the time of writing, digital gold is trading at $70,620. The asset has decreased by 2.7% over the past day.
On March 4, the first cryptocurrency briefly exceeded the $74,000 mark. Analysts identified breaking this level as a key condition for a new rally.