Bitcoin (BTC) dropped 23% in just 83 days after falling below the 365-day moving average in November. According to on-chain analysis platform CryptoQuant, this is a steeper rate of deterioration than the 6% decline recorded during the same period of the early 2022 bear market.
What happened: BTC momentum weakening
CryptoQuant reported on Wednesday that the momentum deterioration rate in this cycle is faster than the previous bear market that started in January 2022.
This asset peaked at $126,000 when CryptoQuant's Bull Score Index recorded 80 at the beginning of October. After a massive liquidation on October 10, the indicator turned bearish and has since dropped to 0 while the price fell to $71,000.
The platform pointed out that Bitcoin has lost key support levels and may be heading towards the range between $70,000 and $60,000. Bitcoin faced resistance three times at the indicator known as the 'Traders' On-chain Realized Price', which acted as support during the bullish market, and recently fell below the lower band.
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Why it matters: Analysts, deeper bearish signals
Analysis firm Santiment stated that after last week's decline, the investment sentiment towards Bitcoin and Ethereum (ETH) has turned extremely bearish. The firm noted that the market often moves contrary to the sentiment of retail investors, and while small investors still show distrust, the possibility of a short-term rebound rally remains.
Glassnode reported that as profitability enters a stage of readjustment, realized losses are increasing, spot demand remains weak, and leverage is being unwound. The cryptocurrency fear and greed index has dropped to about 12, hovering near its all-time low levels.
The total cryptocurrency market capitalization fell by 4.4% on Thursday to $2.53 trillion, marking the lowest level since April 2025. Bitcoin fell below $71,000 during Asian trading hours and is heading towards the support zone near $65,000, while Ethereum crashed below $2,100.
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