Bitcoin Bear Market Nears End? Analysts Flag $60K as Line in Sand

Core Viewpoint - Analysts at Compass Point suggest that the current crypto bear market, particularly for Bitcoin, may be nearing its end, despite recent price drops below $81,000 and into the mid-$70,000s [1] Price Levels and Market Dynamics - Compass Point identifies a price floor for Bitcoin between $60,000 and $68,000, where approximately 7% of long-term holders purchased their BTC [2] - The price range between $70,000 and $80,000 has shown limited structural support, with less than 1% of long-term holder supply originating from this zone, leading to accelerated downward price movements when Bitcoin enters this level [3] - Support zones significantly influence holder behavior, with stronger areas promoting continued holding and thinner zones leading to quicker sales during uncertainty [4] Institutional Influence and Market Conditions - The introduction of spot Bitcoin ETFs has had a direct impact on Bitcoin's price action, with significant price breaks typically occurring alongside bear markets in equities [5] - Institutional interest remains a key factor in the long-term outlook for Bitcoin, despite increasing regulatory scrutiny and central banks exploring digital currencies [6] Fund Flows and Market Sentiment - Recent data indicates periods of net outflows from Bitcoin-related products, although February 2 saw inflows of approximately $562 million, interrupting a previous streak of outflows [7] - Year-to-date figures show net outflows in the billions, with around $1 billion reported, contributing to selling pressure as funds adjust their holdings [7]