The recent surge of the first cryptocurrency above $73,000 is a short-term rebound rather than the start of a new bull market, according to analysts at CryptoQuant.

Bitcoin is still in a bear market despite the recent rally.

Our Bull Score Index remains at 10/100, deep in bearish territory.

The current move is likely just a relief rally, not the start of a new bull phase. pic.twitter.com/bh4O6jQPD6

— CryptoQuant.com (@cryptoquant_com) March 5, 2026

Julio Moreno, head of research at the firm, stated that both fundamental and technical indicators still point to a bearish trend.

Former BitMEX CEO Arthur Hayes shares a similar view, noting that Bitcoin has not decoupled from the performance of American tech SaaS companies. This supports the theory that the current price increase is merely a temporary bounce rather than the beginning of a sustainable upward trend.

Hayes believes the market remains at risk and advises investors to exercise patience.

The current strengthening of the asset is largely due to reduced selling pressure. On the spot market, the demand deficit has shrunk from -136,000 BTC to -25,000 BTC. Concurrently, interest from American investors has increased, with the premium on Coinbase turning positive for the first time since October last year.

Both speculators and long-term investors have also reduced their selling. Unrealized losses for traders have reached levels not seen since July 2022—at these levels, holders are typically reluctant to close positions at a loss. The selling volume from long-term holders dropped from 904,000 BTC in November to 276,000 BTC.

Whales Return

There is also a revival in the institutional sector. Bloomberg analyst Eric Balchunas noted that a recent daily inflow of $500 million has nearly offset the outflow from spot Bitcoin ETFs recorded since the beginning of the year. Positive momentum has been observed in 10 out of 11 leading funds.

Another half bil day, with 10 of the 11 OGs getting love. YTD hole almost closed. Since Iran strike bitcoin and rise of geopolitical fear btc is up 12% and gold is down. So does that mean gold has failed as a safe haven and may be devoid of any purpose and vice-versa for btc? pic.twitter.com/29uHoBYaty

— Eric Balchunas (@EricBalchunas) March 5, 2026

Balchunas also emphasized that Bitcoin has gained about 12% amid escalating conflict in the Middle East and rising geopolitical risks, while the price of gold has decreased.

However, the analyst cautioned against hasty conclusions that the precious metal has lost its status as a safe-haven asset and that Bitcoin is solely driven by geopolitical factors. He noted that other factors, such as profit-taking, shifts in investor sentiment, and weakening institutional flows, also influence short-term market movements.

Despite the localized positivity, the Bitcoin Bull Score index remains at 10 out of 100, indicating ongoing overall market weakness.

If Bitcoin continues to rise, it will face resistance at $79,000 and $90,000, according to Moreno. These levels correspond to the realized price for traders—similar values have previously halted the coin's rally in mid-January.

At the time of writing, the digital gold is trading at $70,620, having decreased by 2.7% over the past day.

On March 4, the first cryptocurrency briefly exceeded the $74,000 mark. Analysts identified breaking this level as a key condition for a new rally in the coin.