Bitcoin may be entering a bear market phase, according to Cryptoquant's latest analysis. The report highlights a shift in institutional activity from accumulation to distribution, with onchain demand showing signs of exhaustion. Since early October, demand growth has fallen below its long-term trend, and U.S. spot ETFs have become net sellers, offloading 24,000 BTC in Q4.
Additionally, large holders with 100–1,000 BTC are growing below trend, a pattern reminiscent of the pre-2022 bear market period. Bitcoin has also broken below its 365-day moving average, and perpetual futures funding rates have hit their lowest since December 2023. Cryptoquant identifies support levels near $56,000 and $70,000.
Cryptoquant Signals Potential Bitcoin Bear Market Amid Demand Decline
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