- Bitcoin enters possible bear market as profit margins decline.
- Profitability shift marks potential market downturn.
- Key support levels identified at $80K–$84K.
Bitcoin may be entering an early bear phase as on-chain profitability turns negative for the first time since 2023, with analysts noting key support at $80K–$84K.
The shift to negative on-chain profitability suggests potential market downturns, affecting Bitcoin’s price stability and signaling possible changes in investor behavior and institutional interest.
CryptoQuant, an on-chain analytics firm, reports Bitcoin may be entering a bear phase. On-chain profitability turned negative, a first since 2023.
Bitcoin saw a drop in price, triggering the shift. Analysts highlight $80K–$84K as critical support for stability.
The price decline led to increased exchange inflows, hinting at potential selling pressure. Bitcoin ETFs saw $708M outflows, weakening demand.
With on-chain data showing net losses, the market is seeing a turnaround. Long-term holders demonstrate trading reluctance, affecting market liquidity.
Experts note the SOPR ratio decline as suggestive of maturing investors, pointing to a cooling off of previous volatility. “Declining net realized PnL reflects maturing investors and dampened volatility, differing from 2022,” remarked the Head of Research at Derive.
Historical trends show similar patterns precede market downturns. Insights point to potential stabilization challenges, possibly resetting for future growth.
