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% over the past week to approach $80,000, prompting analysts to characterize the move as marking the end of the bear market and the arrival of a "Soft Bull Market." Resistance sits at $78,500, with $71,000 anchoring support below. A sustained break past $82,000 could trigger the transition to a full bull market, according to the analysis.
The recent price acceleration has been driven primarily by short squeezes—forced closures of bearish positions—rather than new leveraged buying or substantial spot accumulation. This shift signals a change in trader behavior as fear reverses course. Comparisons to 2023 patterns highlight a cyclical pattern of fear, skepticism, forced liquidations, corrections, panic, and eventual momentum.
Whether this movement sustains depends on Bitcoin maintaining its footing above key support and navigating near-term resistance zones. The psychology remains fluid; prior corrections have triggered capitulation selling before rapid reversals higher, but the timing and magnitude of any pullback remain uncertain.