Bitcoin Drops 34%, Hits Most Bearish Phase in Two Years

Recent data from CryptoQuant indicates Bitcoin is experiencing a bearish phase, with prices dropping significantly and impacting the broader crypto market.

Bitcoin fell from above $126,000 on Oct. 6 to $83,790, marking a 34% decline and a loss of approximately $715 billion in market value.
The Bull Score Index dropped to 20 out of 100 due to weak spot buying, negative price momentum, and reduced stablecoin liquidity.
Bitcoin closed below its 365-day moving average, a key trendline since January 2023.
Corporate treasuries have seen market values drop by 70% to over 90%, limiting their ability to support Bitcoin purchases.
ETF outflows near $3 billion this month contribute to potential selling pressure.

Technical Levels and Short-Term Signals

Glassnode reported the Mayer Multiple nearing the bottom of its range, suggesting potential buyer re-entry.
Oversold RSI readings suggest possible short-term recovery, with resistance at $102,600 and support between $90,000-$92,000.
Historical rallies during downtrends indicate possible rapid reversals.

Market Shock and Macro Factors

A leverage flush-out on October 10 triggered the recent crash, reducing liquidity and intensifying selling pressure.
A fault with Athena USDE on Binance caused further automated liquidations.
Macro factors like tighter liquidity and political uncertainty added to market stress.
Previous catalysts like the 2024 Trump election and corporate treasury buys in 2025 are considered exhausted by CryptoQuant.