The turning red of Bitcoin’s weekly Gaussian channel indicates that the bear market is coming to an end.
Recently, the trend of Bitcoin’s weekly Gaussian channel has shifted from green to red. This technical indicator usually signifies that the bear market has entered its late stage rather than the early phase. The change in the channel color reflects a long-term trend shift that may span several months or even years, and its significance far exceeds the impact of everyday price fluctuations on market sentiment. Historical data shows that when this signal appears, it often marks the end of the most intense selling phase, indicating that the market is approaching a critical point where a bottom will be confirmed. According to Monitored by Woofun AI, the current market structure is in a sensitive period as it transitions from a deep adjustment phase to the confirmation of a bottom. Analysts point out that although most of the downward risks have already been mitigated, the market may still experience a significant price correction in the second or third quarter to complete the final cleansing process. This type of phased decline is seen as necessary for eliminating remaining leverage and confirming the support level at the bottom; thereafter, the market will officially turn around and enter a new super upward cycle. Given the ability of the weekly Gaussian channel to filter out short-term noise, this current red signal provides important strategic guidance for medium- and long-term investors. The key lies in distinguishing between technical rebounds and trend reversals.