Data Rings Alarm: Bitcoin Hits 2-Year Bearish Extreme — Historically Bullish?

According to CryptoQuant data, Bitcoin has moved into what analysts are calling the most bearish phase of the last two years, sending prices down sharply and weighing on the broader crypto market.

The coin slid from a peak above $126,000 on Oct. 6 to $83,790, a drop of around 34% that erased roughly $715 billion in market value.

Bull Conditions Have Weakened Rapidly

Reports have disclosed that CryptoQuant’s Bull Score Index fell to 20 out of 100 last week, driven by weak spot buying, negative price momentum, and a slowdown in stablecoin liquidity.

Bitcoin also closed below its 365-day moving average, a long-run trendline that had held during earlier pullbacks in the current cycle that began in January 2023.

Based on these signs, CryptoQuant views the market as clearly more bearish than it was in prior corrections.

Trading desks and corporate treasuries have shifted behavior. Treasury companies that once supported prices have seen market values drop by 70% to more than 90% in recent months, limiting their ability to issue shares and buy more Bitcoin.

Reports show Michael Saylor’s Strategy bought 8,178 BTC earlier this week but has slowed purchases as its stock market cap fell closer to the value of its holdings.

ETF flows have also turned negative, with outflows totaling close to $3 billion so far this month, a dynamic that can force some institutions to sell spot holdings if spread trades are unwound.

Technical Levels And Short-Term Signals

Based on on-chain indicators, there are mixed signals for buyers. Glassnode reported the Mayer Multiple moving toward the bottom of its long-term range, which often signals a value-driven phase where buyers re-enter.

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