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Bitcoin’s market shift – Is BTC entering a bear phase?
Published on February 27, 2025
Bitcoin’s market dynamics shifted dramatically in early 2025, with key indicators highlighting market cycle transitions and potential price bottoms.
In the wake of these changes, it is crucial for investors to reassess their stance on Bitcoin (BTC) and consider whether we are entering a bear phase.
The recent shift has seen key metrics point towards a transition from a bull run to a bearish trend. CryptoQuant’s Bull-Bear Market Cycle Indicator has already hinted at this possibility by suggesting a move away from a bull market and into a bear market by the end of 2024.
This indicator dipped below -0.0685 on October 24, 2024, while the 365-day moving average trended downwards. The pattern has historically preceded bear markets characterized by declining prices and increased selling pressure.
Moreover, we have seen significant capitulation events in recent times. A whopping $1.7 billion in realized losses was recorded on February 25, 2025, as novice investors distributed over 79,000 BTC at a loss. This surge in capitulation mirrors a similar event that took place in August 2024, marking the end of a bear phase and setting the stage for a price recovery.
The 60-day CDD indicator developed by Maartuunn has also highlighted pronounced surges in long-term holder activity from January to July 2024 and November 2024 to February 26. The analysis showed sharp spikes, reaching over 24 million coin days destroyed, the strongest signal since 2021.
This surge indicated increased spending by long-term holders who typically view Bitcoin as a store of value. Such activity often precedes market tops or heightened volatility. However, these recent events have indicated an elevated CDD, potentially signaling selling pressure.
Considering these shifts in the market dynamics, we are left with two options: either the price floor is forming and may trigger a recovery, or this event could mark the beginning of a bearish trend that will persist for some time.
As investors navigate these uncertain times, it is essential to pay close attention to market trends and signals. By recognizing the rare opportunity presented by this current situation, investors may find themselves poised to reap significant rewards in the future.
In conclusion, Bitcoin’s recent market shift has sparked a crucial discussion about the potential entry into a bear phase. While we cannot accurately predict what will happen next, it is essential for investors to be aware of these shifts and adapt their strategies accordingly.
Source: https://ambcrypto.com/bitcoins-market-shift-is-btc-entering-a-bear-phase/
