"Bitcoin is only halfway through the bear market"

The bottom for Bitcoin (BTC) has, according to many analysts, been reached and recently the renowned crypto analyst Peter Brandt said that the price trend of BTC can be regarded as a classic example of a "Wyckoff hinge", which should lead to an important rally of BTC in the short term. Willy Woo, a prominent market analyst in the field of cryptocurrency, has (again) stated that the crypto market based on various technical indicators, including the NVT (Network Value to Transactions) ratio, is still in the midst of a long-term bear market.

"This is the graph on which the NVT is based; the traditionally close correlation between the value transmitted by the chain (network volume) and the network value (market value). The deviation we are currently experiencing is an indication of what kind of bear market we are in."

In the graph, the deviation between the two mentioned parameters (network volume and market value) seems larger than ever, which would indicate a bear market (with a minimal difference, there would be a bull market according to Woo). However, Woo emphasized that the launch of Liquid, the first sidechain of Bitcoin, has taken a considerable amount of volume from the main chain. That could have manipulated the network value of BTC to some extent.

If the market for cryptocurrency is indeed only halfway through a long-term bear market, that does not necessarily mean that a major decline is imminent. It is possible that the BTC price still shows a substantial decline in the long term, but given the level of stability it has shown in the past three months, a decrease below the support level of $6,000 is unlikely.