CryptoQuant breaks down the current bear market signals

Bitcoin has fallen below its 365-day MA, spot and institutional demand has remained weak and liquidity has tightened; all signs of a bear market.

The crypto market is currently in a bearish season, as confirmed by on-chain indicators. Demand has declined, liquidity is tightening and the technical structure is showing downside risks.

The market research firm CryptoQuant has issued a detailed assessment of the bear cycle, explaining how much the bears have dominated.

BTC drops below 365 day MA

According to the report, the CryptoQuant Bull Score Index, which hovered around 80 (the bullish area) when bitcoin (BTC) peaked at $126,000 in early October, is now at zero. The index entered bearish territory after the October 10 liquidation, which resulted in $19 billion in losses. BTC was still trading around $110,000 at the time; When the price of the asset reached $75,000, the index dropped to zero.

At the time of writing, data from CoinMarketCap showed BTC changing hands below $68,000, down at least 7% over 24 hours. Bitcoin’s price has fallen 23% since falling below its 365-day moving average (MA) on November 12, 2025. The last time BTC fell below this benchmark was in March 2022. Analysts say the asset’s current performance is worse than early 2022.

With the technical structure confirming the downside risk, BTC has fallen below the lower band of the on-chain price realized by traders. The level acted as ultimate support during the bull market. The next support zone is now between $70,000 and $60,000.

Demand is weakening, liquidity is tightening

Amid the price decline, spot and institutional demand have remained weak. The Coinbase Bitcoin Price Premium has been negative since mid-October, indicating weaker demand in the US than the rest of the world.

Moreover, the US ETF (spot exchange-traded fund) market is witnessing a reversal in demand. This time last year, the products had loaded over 46,000 BTC; However, they are now net sellers and have sold around 15,000 BTC to date. Their sales have created a demand gap of over 50,000 BTC, which has contributed to the selling pressure.

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Over the past four months, annual demand growth for Bitcoin has fallen 93% from 1.1 million to 77,000 BTC. This shows that most of the demand growth in this cycle is over.

On the liquidity front, Tether’s (USDT) 60-day market cap growth has turned negative for the first time since October 2023 (-$133 million). The stablecoin’s expansion peaked at $15.9 billion at the end of October 2025. The reversal is typical of bear market cycles.