Bitcoin mirrors late-stage bear market patterns, analyst says volatility trigger may loom

Bitcoin is facing resistance near $67,900, the average cost basis of short-term holders who have held the asset for less than three months, and has failed to break above that level for two months, crypto analyst Murphy said. Murphy explained that as bear markets move into their later stages, trading by short-term holders tends to decline, flattening the slope of the overall average cost basis curve. BTC is still failing to push higher through that range, while changes in the average cost basis remain minimal, Murphy said. Murphy added that similar patterns persisted for about three months in the later stages of the 2018 and 2022 bear markets before prices moved sharply following the Bitcoin Cash hash dispute and the collapse of FTX. The market is now in a phase where volatility could surge in either direction if an external shock emerges.