BEARISH 📉 : Bitcoin Supply In Loss Rises, Signals Early Bear Market Shift

CryptoQuant's Warning on Bitcoin Market

  • Crypto research firm CryptoQuant highlights a potential warning signal for Bitcoin (BTC) and the broader digital asset market.
  • The "supply in loss" metric for Bitcoin is rising, a trend historically preceding bear markets.
  • This indicator increased before market downturns in 2014, 2018, and 2022, marking early bear market phases.
  • Current levels are still below those seen during full market capitulation, but the trend is concerning.

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Market Implications

  • Bitcoin trades around $89,700, with difficulties maintaining the $90,000 support level.
  • Recent declines follow highs near $98,000 as buying pressure weakened.

US Dollar and Potential Bullish Signals

  • Bull Theory analysts note a potential bullish catalyst from US dollar movements.
  • The US Dollar Index, testing critical zones, could signal upcoming Bitcoin rallies as seen in 2017 and 2021.
  • A drop below the long-term trendline at 96 has historically coincided with strong Bitcoin surges.

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Conclusion: The market faces mixed signals: potential early bear-market dynamics versus macro factors that could favor renewed strength in Bitcoin.