The crypto market is currently in a difficult period. People who study on‑chain data and market behavior say the market is in a bear season. This means prices are going down or are expected to go down. Several signs point to weaker demand, less money flowing into the market, and a higher chance of lower prices in the near future.
CryptoQuant, a company that analyzes data from blockchain networks and crypto markets, released a detailed look at the current bear phase. Their report explains how the market is being dominated by sellers (the bears) and what indicators are showing this trend. In simple words, their data helps explain why some investors are worried and what might come next for prices.
Bitcoin Falls Below Its 365‑Day Moving Average
One important thing CryptoQuant looked at is a figure called the moving average. A moving average is a simple way to smooth out price changes to see the longer trend. Imagine you average the price of Bitcoin over the last 365 days. This helps traders see whether prices are generally going up or down over a longer period, not just on one day.
CryptoQuant uses a few different indicators to judge sentiment. One of them is the Bull Score Index. This score used to stay around 80 when Bitcoin’s price was very high, around $126,000, in early October. A high number like 80 is usually a sign of bullish (optimistic) mood. But now the Bull Score Index is at zero. When did it flip to bearish? After the big liquidation event on October 10 that caused about $19 billion in losses. That event happened while Bitcoin’s price was still around $110,000. As the price fell to $75,000, the Bull Score dropped to zero, showing a clear shift to negative sentiment.
At the time of the report, Bitcoin was trading below $68,000. The market also showed a 24‑hour drop of at least 7%. In terms of longer history, Bitcoin’s price has fallen about 23% since it dropped below its 365‑day moving average on November 12, 2025. The last time Bitcoin fell below this 365‑day moving average was in March 2022. Analysts say that the current performance is worse than the early 2022 bear period. In other words, this is not just a small wobble—it’s a meaningful downturn compared with that earlier time.
A further sign of downside risk is Bitcoin’s on‑chain realized price structure breaking lower. CryptoQuant says Bitcoin has moved below the lower edge of the Traders’ On‑chain Realized Price. This metric often acts like a floor. When the price is below this lower band, it can be a sign of renewed selling pressure or weak buyer interest. The next strong support zone—that is, a price range where buyers might step in again—was identified as between $70,000 and $60,000.
Demand Is Weak and Liquidity Is Tight
Prices are not the only thing telling the bear story. Demand and liquidity are also soft. Demand is how many buyers want to buy Bitcoin in spot markets (the actual buying and selling of coins today, not in the future). Liquidity is about how easily people can buy and sell without moving the price a lot. When demand is weak and liquidity tightens, prices can stay under pressure for longer.
One sign is the Coinbase Bitcoin Price Premium, which has been negative since mid‑October. This means that the price of Bitcoin in U.S. markets (on Coinbase) has been lower than in other parts of the world. In simple terms, it’s a signal that U.S. buyers are not as active as buyers elsewhere, which can reduce overall demand.
Another big sign is in the U.S. spot ETF market. Exchange‑traded funds (ETFs) are financial products that let people invest in Bitcoin without buying the coins directly. A year ago, these U.S. ETFs together held or funded more than 46,000 BTC. Today, they are net sellers, having sold around 15,000 BTC so far. This shift creates a big gap in demand—more selling than buying—which adds to price pressure. In practical terms, this is like a store suddenly selling more stock than it can replace, which makes prices fall further.
Over the last four months, the growth of demand for Bitcoin in the spot market has dropped sharply. The annual growth rate fell from about 1.1 million BTC to 77,000 BTC. That means most of the growth in demand that happened in the previous period has already happened. With less demand coming in, prices have less support from buyers in the market.
On the liquidity side, there was an important sign from Tether, one of the most used stablecoins in crypto trading. A stablecoin is a type of cryptocurrency that tries to keep its price steady by tying its value to something stable—usually a fiat currency like the U.S. dollar. The growth of Tether’s market cap over a 60‑day period turned negative for the first time since October 2023. In other words, Tether stopped expanding and started shrinking for a while. Tether’s supply had grown to about $15.9 billion in late October 2025; the turn to negative growth is a typical sign you often see in bear markets, where money moves out of the market or into safer assets.
In short, the demand picture is weak—fewer new buyers—and liquidity is tight—there is less money available to support prices. These forces together help explain why prices have moved lower and why a floor or support level might be hard to reach in the near term.
What This Means for Investors
All these signals from CryptoQuant point to a continued bear environment. A bear market is a time when prices keep going down, investors are cautious, and many players try to protect the value of their holdings rather than take big risks. The indicators discussed in the report show that selling pressure remains and that buyers may not be lining up quickly to push prices higher.
For new investors or people learning about crypto, it can be helpful to remember a few simple ideas. First, markets move in cycles. Prices go up (bull markets) and go down (bear markets). Second, a moving average is a way to see the longer trend, not just a single day’s price. Third, a price hovering near a support zone means there could be a place where buyers might come back in, but there is no guarantee. Finally, explainers like the Bull Score Index and on‑chain realized price are tools to help professionals understand how the market is feeling and where it might go next. They are not crystal balls and do not guarantee what will happen next.
A Quick Glossary of Key Terms
- Bitcoin: A digital money system that lets people send value directly to each other over the Internet without a bank or central authority. It was created in 2009 by someone using the name Satoshi Nakamoto. Bitcoin
- Moving average: A simple way to smooth price data by averaging prices over a certain number of days. This helps show longer trends instead of daily ups and downs. Moving average
- Bear market: A period when prices are falling or expected to fall, often with pessimistic mood and a longer downward trend. Bear market
- Stablecoin: A cryptocurrency designed to keep its price steady by tying it to something stable like the U.S. dollar or gold. Stablecoin
- Tether (cryptocurrency): A popular stablecoin that is pegged to the U.S. dollar and widely used in crypto trading. Tether (cryptocurrency)
The takeaway from CryptoQuant is simple: the current signs point to a difficult period for Bitcoin and the broader crypto market. Prices have fallen below important measures, demand is not growing strongly, and many indicators suggest more downside risk before the market could find strong support again. Investors should stay cautious, manage risk, and seek reliable information before making big moves.
Source: CryptoPotato analysis of CryptoQuant data. The post CryptoQuant Breaks Down Current Bear Market Signals appeared first on CryptoPotato.