Analysts at CryptoQuant have identified worrying signals from market metrics suggesting a potential bear market onset for Bitcoin.
Bearish Market Signals
According to CryptoQuant, all Bitcoin valuation metrics indicate that the market is in bearish territory. The Bitcoin Bull-Bear Market Cycle Indicator has reached its lowest level in this cycle, while the Market Value to Realized Value (MVRV) Ratio Z-score has fallen below its 365-day moving average.
Possible Drop to $63K?
With the growth of large investors’ holdings falling, U.S.-based spot Bitcoin ETFs have become net sellers, contrasting sharply with purchases in the same period last year. CryptoQuant analysts believe BTC could fall to $63,000 if it fails to hold the support level between $75,000 and $78,000.
Market Impact
The volume of BTC flowing into the American crypto exchange Coinbase from other trading platforms has fallen below the 90-day moving average, indicating reduced demand. This could exert additional downward pressure on Bitcoin’s price.
According to CryptoQuant's research, current Bitcoin market metrics signal a potential bear market onset, which may impact investors’ strategies.
