Bitcoin On The Brink Of A Bearish Market Regime

A Choppy Drawdown Pattern

Bitcoin last made a new all-time high in March. That means BTC has been in a drawdown for six months.

And things aren't getting better.

Zooming out over the full duration of this drawdown, the overall trend is clearly pointing downward. And now the broader market sell-off is adding to the pressure.

This is putting Bitcoin in a tough position.

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Bitcoin On The Brink Of A Bearish Market Regime

The Takeaway

Bitcoin's 6-month downward trend since its March all-time high with a 33% drawdown is cause for concerns. 

This pattern, combined with similar trends in other risk assets is placing Bitcoin near bearish territory in our market regime model. 

Upcoming Federal Reserve rate cuts may not provide the expected market boost due to the level of uncertainty on the soft landing. 

Given the current market uncertainty I’d say it is wise to exercise extreme caution and avoid taking on additional risks until a clearer trend emerge.

Lower Lows