Bitcoin is showing signs of entering a bear market, with signals pointing to a corrective phase. Recent data highlights shifts in investor behavior and trading flows, emphasizing caution among market participants.
Bear Market Signs in Bitcoin
Several market indicators now point toward a potential Bitcoin bear market. The Inter-Exchange Flow Pulse signals a corrective phase, and trading metrics indicate a clear shift in market momentum. The MVRV Ratio is currently negative, suggesting reduced positive momentum. The Market Cycle indicator reveals early stages of a bear trend: price action has slowed, and technical markers have shifted negative. The current market environment reflects broader caution.
Investor Activity and Profit Taking
Large investors have become cautious, actively selling into the market. Bitcoin miners recently realized over $27 million in profits, indicating notable exits from positions. In parallel, Bitcoin whales extracted over $260 million in profits, pointing to significant profit-taking activity. Capital inflows experienced a steep decline from $135 billion to $4 billion, adding pressure on Bitcoin’s price. The decrease in inflows aligns with the observed market corrections.
Key Support Levels and Recovery Trends
Numerous technical indicators designate the $66,000–$69,000 price area as a vital support zone. Investment analytics highlight Bitcoin purchases at $69,000 by 750,000 investors and support near $66,000. Historical price behavior shows that Bitcoin often recovers after breaching key moving averages. It has trended towards the 200-week SMA, now approximately $46,000, when falling below the 50-week SMA. Rising global liquidity could spur recovery. Reclaiming support at $93,700 could open a path toward a higher target near $111,000.
Bitcoin currently exhibits multiple technical signals that require careful observation. The market presents clear support zones that may offer resilience amid ongoing corrections. Investors now await further developments as the market responds to these shifts.
