Despite current signals indicating a bear market, Bitcoin experienced a bullish trend in 2021, suggesting that the ongoing decline might present a buying opportunity rather than a definitive downturn.

Historically, bear market signals have preceded price lows for Bitcoin, and they notably appeared during the latter half of the 2021 bull run, indicating that high prices may not be sustainable.

Overall, the Bitcoin market is currently characterized by low momentum and cautious positioning, indicating a transitional phase rather than a definitive bearish trend.

The presence of two CME futures gaps may serve as crucial price targets, influencing potential retracement or rally strategies based on future price movements.

The current bear phase signal persists even after a recent price recovery, aligning with historical patterns observed during Bitcoin bear markets.

Recent market dynamics show that open interest delta has dropped to -$15 billion, reflecting leveraged exits and profit-taking as traders navigate market uncertainty.

Despite a weekly average price of $95,219.21, with a slight gain of +0.38%, trading patterns reveal lower conviction among buyers, particularly noticeable during weekends.

Bitcoin is currently trading within CME futures gaps, specifically between $91,900–$93,400 and $96,480–$97,300, indicating a range-bound market.

The Bitcoin Network Activity Index has recently fallen into the bear market zone, suggesting reduced activity on the network, with metrics like transaction count and daily active addresses indicating waning demand.

After peaking last year, the index has sharply decreased since December 2024, further highlighting the decline in network activity.

As of May 7, 2025, Bitcoin's price stands at approximately $93,800, reflecting a 1% decline over the past week.

The combined market capitalization of stablecoins has reached a new all-time high, which could signal potential inflows into Bitcoin and other cryptocurrencies, possibly providing bullish momentum for the market.