Dec 18, 2025
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CryptoQuant Report Suggests Bitcoin May Enter Extended Supercycle Phase
Bitcoin has experienced a decline of over 30% since early October, suggesting a potential cycle top rather than a routine correction. Investor sentiment has shifted towards fear, with many preparing for a possible prolonged bear market.
- A CryptoQuant report challenges the traditional four-year Bitcoin cycle, proposing a "Supercycle" thesis.
- The Supercycle suggests that Bitcoin's market dynamics have fundamentally changed due to structural shifts.
The New Fundamentals Behind Bitcoin’s Supercycle Thesis
- Institutional adoption, such as Spot Bitcoin ETFs by firms like BlackRock, introduces stable demand, unlike speculative retail flows.
- On-chain data shows long-term accumulation and reduced sell-side pressure, indicating a mature market structure.
- Infrastructure improvements in the crypto ecosystem enhance Bitcoin's role as a settlement and reserve asset.
- Geopolitical instability and monetary policies support Bitcoin's appeal as a decentralized hard asset.
Price Action Shows Weak Structure Near Key Support
- Bitcoin trades below the $90,000 level, showing a bearish trend reinforced by moving averages acting as resistance.
- The current consolidation around $86,000–$87,000 indicates indecision, with weaker bounces signifying limited demand.
- The $85,000–$86,000 area is a critical support zone; a break below could lead to a deeper correction.
- Bulls need to reclaim $90,000 and surpass descending averages to shift momentum.
