Bitcoin, the world’s first and most popular cryptocurrency, is facing a potential bear market as a number of key metrics are showing a “bearish divergence.” This means that while the price of Bitcoin has been rising, other indicators are suggesting a downward trend.

The Capriole Investments’ Bitcoin Macro Index, which uses machine learning to analyze data from various metrics, has been showing lower highs since late 2020 while the price of Bitcoin has been reaching higher highs. This is a concerning sign for the overall health of the market, as it could indicate that Bitcoin has already reached its peak for this cycle.

The creator of the index, Charles Edwards, has acknowledged this bearish divergence and stated that it is “not great.” However, he also noted that he will not be fighting against the index if it turns positive in the future.

Other onchain metrics, such as the Market Value to Realized Value (MVRV) and Net Unspent Profit/Loss (NUPL), are also showing signs of turbulence in the short to mid-term. However, they do not suggest that Bitcoin has reached its peak yet.

In order for the market to turn bullish again, the Inter-Exchange Flow Pulse (IFP) metric, which flipped bearish in February, would need to return above its 90-day simple moving average. This would indicate a shift in sentiment and potentially lead to a recovery in the market.

Despite these concerning signals, it is important to note that this article does not contain investment advice or recommendations. Every investment and trading decision involves risk, and it is important for individuals to conduct their own research before making any decisions.

In conclusion, while the current state of the market may be uncertain, it is important for investors to stay informed and make decisions based on their own research and risk tolerance. Only time will tell if Bitcoin will continue its upward trend or if a bear market is on the horizon.