Bitcoin faces bearish signals as key valuation metrics indicate weakness. Demand is contracting, and large investors are slowing accumulation.
Bitcoin Metrics Turn Bearish
The CryptoQuant Bitcoin Bull-Bear Market Cycle indicator is at its most bearish level in this cycle. Importantly, the MVRV Ration z-score has declined below its 365-day moving average, suggesting a loss of upward momentum.
Bitcoin Demand Is Weakening
According to the CryptoQuant weekly report, whales have slowed accumulation. Bitcoin ETFs in the US are now net sellers. Yesterday, over 371M exited the Bitcoin Spot ETF market. Last week, demand shrunk by 103K, the fastest decline since July 2024. Starting March, the BTC price fell from $84,352.73 to $82,706.
How Deep Will This Correction Go?
Currently, Bitcoin's price is at least 32.39% below its all-time high. Valuation metrics suggest this correction is deeper than previous bull runs. If demand remains weak, Bitcoin could enter a prolonged bearish phase.
In conclusion, Bitcoin is under significant bearish pressure, with shrinking demand and negative signals from key metrics. While similar corrections have occurred before, the depth of this downturn raises concerns about a potential prolonged bear market.
