CryptoQuant’s Bear Market Breakdown: A Tale of Woe and Whiskers

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Dearest investor, it seems the crypto market has once again decided to host a bear market soirée, complete with dwindling demand, liquidity tighter than a corset, and technical indicators whispering of further despair. How thrilling.

CryptoQuant, that most perspicacious of market observers, has graciously provided a detailed analysis of this bearish epoch, revealing just how comprehensively the bears have outmaneuvered the bulls. One might almost call it a masterclass in gloom.

BTC Falls Below 365-Day MA

The illustrious CryptoQuant Bull Score Index, which once danced merrily in the 80s as BTC flirted with $126,000, has now plummeted to zero-a veritable ghost town of optimism. This descent began after the October 10 liquidation event, a financial soiree that left $19 billion in losses strewn across the floor like confetti. BTC, still lingering near $110,000 at the time, later slumped to $75,000, dragging the index into the abyss.

Presently, BTC trades below $68,000, having suffered a 24-hour drop of 7% (a rather steep slope for a cryptocurrency). Since crossing beneath its 365-day moving average on November 12, 2025, the asset has shed 23%. For context, the last time BTC committed such a faux pas was March 2022. Analysts now claim this downturn surpasses even the early 2022 bear market-a new low, quite literally.

With technical indicators confirming the downward spiral, BTC has now fallen below the Traders’ On-chain Realized Price lower band, a level once revered as sacrosanct during bullish times. The next support zone? A humble $70,000 to $60,000. One might call it a “reduction in scale.”

Demand Weakens, Liquidity Tightens

Amid this fiscal waltz of despair, spot and institutional demand have proven as enthusiastic as a debutante at a funeral. The Coinbase Bitcoin Price Premium has languished in negative territory since mid-October, suggesting U.S. demand pales in comparison to the rest of the world’s indifference.

Meanwhile, the U.S. spot ETF market has staged a reversal so dramatic it could rival a Shakespearean tragedy. These funds, which last year gobbled up 46,000 BTC, now serve as net sellers, offloading 15,000 BTC thus far. Their efforts have carved a demand gap of over 50,000 BTC, a chasm that sells with the vigor of a symphony of despair.

Over four months, Bitcoin’s spot demand annual growth has nosedived from 1.1 million BTC to a paltry 77,000. Clearly, the appetite for this cycle has been devoured by the bears themselves.

On the liquidity front, Tether’s (USDT) market cap has shed $133 million over 60 days-the first such contraction since October 2023. Its peak of $15.9 billion in late October 2025 now feels as distant as a memory at a garden party. One suspects the stablecoin is merely trimming its sails for the bear market voyage ahead.

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2026-02-07 17:39