Bitcoin fights against price magnets – will the bear market history repeat itself?

The Bitcoin market is at a critical juncture. After losing key support levels, BTC is testing areas last seen many months ago. Investors and analysts are increasingly discussing much deeper declines, and numerous technical indicators along with blockchain data suggest we may have entered a phase of structural bear sentiment. History may repeat itself—and this time, it seems even more uncompromising.

Technical Breakthrough Fuels Bullish Hope

Bitcoin cannot hold the $80,000 USD level—an important support line for bulls. Recent sessions have seen a drop below this zone, with BTC currently near $68,860 USD, up +3.64% in the last 24 hours. However, this slight rebound does not change the broader market reality.

Previous dips pushed the price down to levels close to $77,600 USD—levels not seen in ten months. This break represents not just a price decline but, most importantly, a psychological one. Bulls are currently very weak, and the bounce from the bottom appears to be only a temporary relief.

Analysts Talk About Magnet Levels for Further Declines

Some market participants are already pointing to areas where prices could be magnetized—just below current levels. Rekt Capital highlighted $74,400 USD as the next significant testing point. If this formation holds and the bears gain strength, there are even talks of liquidity magnets at $49,180 USD—levels that would be a defeat not only for bulls but for everyone who bought BTC in recent months.

This shows how quickly sentiment can shift when key support lines fail. Traders are watching charts and identifying attraction points—natural spots where sellers might expect a bounce or where the decline could halt.

April 2022 Pattern Raises Concerns

There is a moment when Bitcoin broke its 21-week exponential moving average (EMA)—a line that has historically signaled the onset of deep bear phases. History shows that when this indicator breaks, it’s usually a bad sign for long-term investors.

After breaking this level, BTC lost about 17% of its value—from $90,000 USD to current levels. We last saw a similar scenario in April 2022, just before a prolonged bear market that lasted many months. Back then, the market fell below $20,000 USD—a path no one wanted to imagine at the start.

Where Price Magnets Might Halt the Decline?

Despite the bleak outlook, there is one technical point some traders are watching. The CME futures gap around $84,000 USD could potentially act as a short-term price magnet. Futures gaps are known to sometimes serve as attraction points for prices—the market “magnetizes” toward them to “fill” the gap.

Bitcoin might attempt a rebound toward this zone in the coming weeks. However, even if it happens, it would most likely be only a temporary relief for holders unless major support levels are reclaimed on a larger scale. Without confirmation from stronger support, such a move would be just a brief breather.

Blockchain Data Warns of Prolonged Bear Sentiment

CryptoQuant—a platform analyzing on-chain data—provides information that does not favor bulls. Bitcoin is trading below the realized price for investors who held BTC for 12-18 months. This realized price represents the average cost at which coins were last moved between wallets.

When BTC falls below this threshold and remains there, historically it signals a shift from normal corrections to a true, structural bear market. CryptoQuant observed that this realized price could now act as resistance—meaning all attempts to rise might fail as holders start selling at levels where they can regain balance.

The combination of a price below cost, negative returns, and slowing growth appears to be a magnet attracting the previous cycle’s bear sentiment.

What’s Next for Bitcoin in the Coming Weeks?

The current situation is complex. On one hand, technical signals point to a bearish scenario, and blockchain data confirms concerns. Similar historical patterns suggest the road could be long and painful for those expecting a quick rebound. CME gaps can sometimes act as temporary price magnets, but without fundamental sentiment improvement, they will only be fleeting relief.

Analysts agree—if history repeats, Bitcoin could test levels well below current prices, possibly even around $50,000 USD or lower. This is not a prospect traders want to see on their screens, but the data clearly shows: the bear market has its own momentum, and price magnets will pull it downward until structural sentiment shifts.

Be cautious. Manage your risk. This is not financial advice.