[CryptoQuant: Weak Market Demand Indicates Current Movement is Merely a Bear Market Rally, Bitcoin's Trend Highly Resembles 2022] BlockBeats News, January 17 — On-chain data analytics firm CryptoQuant pointed out that Bitcoin's recent price rebound appears to be a temporary recovery rather than a sustained revival, as market demand remains weak. CryptoQuant stated in its Friday report: 'Bitcoin has risen 21% since November 21, which seems to be a bear market rally. While demand conditions have slightly improved, they remain weak.' A bear market rally refers to a sharp price rebound within an overall downward trend, without altering the fundamental bear market structure. Research director Julio Moreno noted that behind Bitcoin's current rebound, the trend of declining demand continues. After previously dropping approximately 19% and falling below the 365-day moving average, Bitcoin has risen about 21% since November 21. CryptoQuant views this moving average as a critical dividing line between bull and bear market conditions. Once Bitcoin falls below this line, it confirms the arrival of a bear market. Analysts pointed out that the current price trend is highly similar to the situation in 2022—when Bitcoin also rebounded strongly after breaking below the 365-day moving average but faced resistance near the line and resumed its downward trajectory. According to CryptoQuant data, Bitcoin is currently approaching this long-term moving average again (currently around $101,000), but has yet to successfully reclaim it. The company stated that in past bear markets, similar failures to reclaim this moving average often triggered a new round of declines. 'At the time, many market participants believed the bear market had ended, the four-year cycle was invalid, and a supercycle was imminent—sentiments that are quite similar to the current market,' CryptoQuant wrote. 'However, fundamentals and various technical indicators still show that we remain in a bear market.'