Analyst: BTC signal points to short-term top, not new bull market

While BTC is showing signs of escaping a bear market, it is more likely forming a short-term top than starting a major bull run, according to on-chain analyst Julio Moreno. In a CryptoQuant contribution, Moreno noted that the platform's Bull-Bear Market Cycle indicator has flashed an "Early Bull" signal for the first time since March 2023. However, he warned against blindly interpreting this signal, pointing out that when BTC entered a similar phase in March 2023, it subsequently hit resistance and declined. That signal marked a short-term peak before a further downturn, not the start of a new bull market. Moreno assessed that while BTC appears to have recovered from a deep correction, there are simultaneous signs of market overheating and fatigue. He concluded that the current situation seems closer to a potential short-term top than the beginning of a bull market, adding that a strong price breakout and further confirmation are needed.