Bitcoin surged 25% this week to near $80,000, with analysts suggesting the bear market may be ending and a 'soft bull market' beginning.
Macro & Markets ·
Bitcoin climbed 25% during the week, approaching $80,000 and prompting analysts to declare the bear market may have ended as the asset enters what some are calling a "Soft Bull Market." Analyst Doctor Profit identified $71,000 as critical support and $78,500 as the next barrier; a decisive move above $82,000 would signal escalation into a full bull market. The price movement appears driven primarily by forced closure of short positions rather than fresh leverage or substantial spot accumulation, reflecting a psychological shift as traders respond to reversals in market fear.
The weekly rally mirrors patterns from prior cycles—January 2023 saw Bitcoin gain 25% following the FTX collapse despite pervasive bearish sentiment, and 2019 produced a 32% single-week surge. Doctor Profit noted that the recent action echoes a recurring sequence of fear, disbelief, short squeezes, corrections, and eventual expansion rather than an exact price repeat. Observers also point to Bitcoin's sustained defense around $60,000 as evidence that significant capital stands ready to deploy during periods of elevated fear.
What remains unclear is whether this move constitutes a durable shift in market regime or a temporary relief rally within a broader downturn. The path from $71,000 support through $78,500 resistance to $82,000 remains open to interpretation, and whether the psychology underlying the short squeeze can sustain a genuine bull cycle has not yet been determined.