The current price action closely mirrors Q1 and Q2 of 2022, which marked the beginning of the bear market.

Back then, we saw very similar price action at the beginning of a bear market: a strong rejection from the ATH, followed by several months of ranging. Price revisited the highs around $45,800, where most retail stops were taken. That creates the ideal environment for market makers and large players to push price lower, they always want as few people as possible positioned in the right direction.

Now we’re seeing something similar again: a quick move up to $94,700 to take liquidity, followed by a strong rejection.

I’ve mentioned this multiple times already, but in my view, we are at the beginning of a bear market.

Global uncertainty is at extreme levels, equity markets are overbought, and the explosive moves in gold and silver are concerning. Early January was a distraction to turn everyone bullish again, but from here, shorts are likely to start performing well again.