The cryptocurrency market is experiencing turbulent days as Bitcoin surpassed the $80,000 mark, but the analysis firm The DeFi Report has published a new report urging investors to exercise caution. Analysts emphasize that Bitcoin’s current surge bears a striking resemblance to the market structure of 2022.
According to The DeFi Report, leveraged trading data and funding rates in the market are very similar to the bear market period of 2022. It notes that investors are still heavily holding “short” positions, and as the price rises, the liquidation of these positions (short squeeze) triggers upward price movements.
However, experts argue that the spot trading volumes and on-chain activity necessary for a true bull market are not yet at sufficient levels.
Another point highlighted in the report is institutional interest. While inflows into Bitcoin ETFs continue, the momentum is not as strong as it was in 2024. Furthermore, recent hints from MicroStrategy CEO Michael Saylor that he might sell Bitcoin to fund dividend payments are seen as a crack in his “never sell” narrative.
Analysts point to three key price zones that will determine Bitcoin’s future:
$85,000: This level, where the 200-day moving average passes, is seen as the biggest resistance point.
$95,000: Sustained price action above this level would be considered “confirmation of a true bull market.”
$65,000 and Below: This level, which analysts describe as the “fair value” zone, could be retested in a potential correction.
*This is not investment advice.