Bitcoin Faces Risk of Deeper Losses as Price Action Echoes Past Bear Markets

• Bitcoin price targets remain bearish as it struggles near multi-month lows, influenced by historical bear market trends.

• CME futures gaps could present a temporary relief for Bitcoin in the near term, potentially marking a short-term rebound.

• Long-term on-chain analysis warns of a potentially extended bearish phase, showcasing significant structural concerns.

Bitcoin Faces Bearish Struggles Amid Historical Trends

Bitcoin's value leaned under pressure as the weekend drew to a close, resting below the critical $80,000 mark after failing to rally from recent multi-month lows. Despite efforts to reclaim supportive levels, BTC's drop of over 6% the previous day signaled caution among traders, with the famed crosser of bull market EMAs now a recent memory. Historical analysis suggests this trend may continue, aligning with previous bear market behavior post-EMA crossover, where the cryptocurrency has seen a 17% decline from $90,000 to $78,000. This crossover, involving 21-week and 50-week EMAs, last occurred in April 2022 and bears the weight of precedent.

In addition, CME futures gaps near $84,000 offer potential for a modest price rebound, acting as a magnetic target in the coming weeks. The looming question for traders remains whether this gap can ignite any sustainable momentum in the face of overarching bearish sentiment.

Zooming out, Bitcoin's prolonged struggle below the realized price—a key metric aggregating the cost at which BTC last moved—signals alarm for sustained bearish market phases. On-chain data indicates that prolonged price action below this threshold transitions markets from mere corrections to structural downturns. The insight shared by CryptoQuant contributor Crazzyblockk underscores this, pointing to a stable yet resistant realized price metric. This scenario, rife with negative unrealized profitability and slowdown in balance growth, historically hints at an extended bearish period, offering little respite for investors seeking bullish resurgence.