CryptoQuant: Bitcoin Slides Further into Bear Territory as On-Chain Metrics Turn Negative
CryptoQuant data show Bitcoin weakening as multiple on-chain indicators signal increased selling pressure and reduced demand. Key metrics such as exchange inflows, realized profit/loss distributions, and spot exchange balance trends point to heightened outflows to exchanges and shrinking holder conviction. CryptoQuant’s analysis highlights rising exchange inflows and decreasing net accumulation by long-term holders — patterns historically associated with deeper corrections. The report notes that short-term traders and profit-takers are active while liquidity among long-term holders wanes, contributing to downward price momentum. Traders should watch exchange reserve levels, realized losses/profits, and net position changes for signs of capitulation or stabilization. These metrics suggest increased volatility and downside risk in the near term, though long-term implications depend on whether on-chain selling exhausts supply and restores accumulation afterward.
Bearish
The CryptoQuant analysis points to classic bearish on-chain signals: rising exchange inflows, declining long-term holder accumulation, and realized profit-taking by short-term holders. Historically, similar patterns (notably in 2018 and during mid-2021 corrections) preceded extended price weakness as sellers overwhelmed bid-side liquidity. For traders this means elevated short-term downside risk and higher volatility; stop-losses and position sizing become more important. In the short term, expect continued pressure until exchange reserves stop rising and net accumulation resumes or a demonstrable capitulation phase exhausts supply. In the medium-to-long term, if selling pressure subsides and long-term holders begin to re-accumulate, these conditions can set the stage for a recovery. Therefore the immediate market reaction is bearish, while the long-term outlook depends on whether on-chain selling is temporary or persistent.