Momentum indicators are useful tools for assessing market trends. Even without a dedicated momentum indicator, applying short- and long-term moving averages can provide a clear view of market trends.

The MVRV indicator shows whether the market is overvalued or undervalued, while the Active Addresses indicator reflects investor activity on the BTC network. Applying the moving averages to both indicators resulted in a “death cross,” similar to the bearish reversal pattern of the 2021 cycle.

This has raised concerns about Bitcoin’s ability to recover in these unfavorable conditions.