Bitcoin Faces Bearish Pressure While Axie Infinity Surges

By: Eliza Bennet

Amidst a period of uncertainty in the cryptocurrency market, Bitcoin finds itself in a precarious situation as it struggles to reclaim its position above the $90,000 benchmark. Analysts point to the dwindling bullish momentum that has enveloped the market for over 83 days, a phenomenon elucidated by the Trend Pulse macro indicator. This tool, as explained by analyst Axel Adler, has consistently shown Bitcoin in Bear Mode since January 19, with key technical indicators depicting a rather grim picture.

The Trend Pulse recently downgraded its stance from Neutral to Bear with the 14-day return turning negative and the SMA30 versus SMA200 crossing to a negative alignment. Bitcoin's quarterly returns portray a modest decline at -19%, indicating an overarching bearish sentiment in the market, though not dire enough to indicate a complete capitulation. Traders remain in a deadlock, wary of market conditions that could either suggest a minor pullback or possibly pave the way for a substantial corrective phase.

In stark contrast to Bitcoin's lackluster performance, Axie Infinity, a renowned gaming token, is experiencing a remarkable surge. The GameFi sector, to which Axie Infinity belongs, is attracting substantial interest from large investors, or 'whales,' catalyzing its price action. This shift highlights a distinct trend wherein blockchain-based games and associated cryptocurrencies are gaining significant traction, diverging from the traditional giants like Bitcoin. For curious minds interested in the gaming and blockchain synergy, platforms like Axie Infinity offer further insights.

Bitcoin currently struggles to stay above $90,000, repeatedly failing to harness momentum as price action oscillates within a broad consolidation range. Key moving averages indicate a downward slope, asserting persistent bearish pressure. Volume trends further reveal stronger sell-offs relative to rebound attempts, emphasizing a bearish tilt. To reverse this trend, Bitcoin must reclaim and sustain levels above $90K, eyeing the $92K-94K bracket to alleviate downside risks. Yet with the current macro setup, investors are wary of a potential deeper retreat into the mid-$80Ks, which may prolong Bitcoin's bearish stretch.