The cryptocurrency market has entered a clearly bearish phase, according to fresh on-chain analysis from CryptoQuant. Weak demand, tightening liquidity, and deteriorating technical structure are all reinforcing downside risk.
CryptoQuant’s latest report details how bearish forces have taken control of the market and why conditions now resemble past prolonged downturns.
Bitcoin Drops Below Long Term Trend Support
CryptoQuant noted that its Bull Score Index, which stood near 80 during Bitcoin’s peak around $126,000 in early October, has now fallen to zero. The index slipped into bearish territory following the October 10 liquidation event that erased roughly $19 billion from the market. At the time, Bitcoin was still trading near $110,000, but as prices declined toward $75,000, the index fully collapsed.
Bitcoin is currently trading below $68,000 after falling more than 7% in the past 24 hours. Since dropping under its 365 day moving average on November 12, 2025, BTC has declined about 23%. Analysts point out that the last time Bitcoin lost this key level was in March 2022, and the current decline is unfolding faster than during the early stages of that bear market.
From a structural perspective, Bitcoin has also fallen below the lower boundary of the Traders’ On chain Realized Price, a level that previously acted as strong support throughout the bull cycle. With that floor broken, CryptoQuant identifies the next major support zone between $70,000 and $60,000.
Demand Slows as Liquidity Dries Up
Beyond price action, demand indicators continue to weaken. The Coinbase Bitcoin Price Premium has remained negative since mid October, signaling softer buying interest from U.S. investors compared with global markets.
Institutional demand has also reversed. U.S. spot Bitcoin ETFs, which accumulated more than 46,000 BTC around this time last year, have turned into net sellers. So far, these funds have offloaded roughly 15,000 BTC, creating a demand shortfall of over 50,000 BTC and adding to selling pressure.
Spot market growth paints a similar picture. Over the past four months, Bitcoin’s annual spot demand growth has collapsed by 93%, falling from 1.1 million BTC to just 77,000 BTC. According to CryptoQuant, this suggests the bulk of demand expansion for the current cycle is already behind us.
Liquidity conditions are also deteriorating. The 60 day growth rate of Tether’s market capitalization has turned negative for the first time since October 2023, declining by about $133 million. USDT expansion peaked near $15.9 billion in late October 2025, and this reversal in stablecoin growth is a pattern historically associated with bear market phases.
Taken together, CryptoQuant concludes that weakening demand, shrinking liquidity, and broken technical support all reinforce the view that the market remains firmly in a bearish environment.
