Bitcoin is entering bearish territory as institutional demand is drowning and key market indicators are pointing to a bearish phase, according to data from analytics platform cryptoquant.
Bitcoin (BTC) Market conditions have turned “most bearish” within the current bull cycle that began in January 2023, Cryptoquant said in the latest Crypto Weekly report shared with Cointelegraph.
The cryptoquant’s bull score index declined to the extreme bearish level of 20/100, while BTC price fell below the 365-day moving average of $102,000-a key technical level and the Final bearish signal marking the start of the 2022 bear market.
The price drop comes amid weakening institutional demand, including reduced purchases of Bitcoin Treasurys by companies such as Michael Saylor’s approachwith limited flow to Exchange traded funds (ETFs).
Corporate Bitcoin Demand Tapers Off
Even in The latest buying strategy of 8,178 BTC ($ 835 million) – ITS Biggest acquisition since July 2025 – The purchase remains smaller than many of its previous major purchases, Cryptoquant head of research Julio Moreno noted in an X post on Wednesday.
“Treasury companies have generally stopped buying, some are even selling part of their holdings,” Moreno observed, referring to companies like Metaplanetwhich is the latest BTC purchase is in September.
In addition to avoiding corporate buying, Bitcoin ETFs are also under pressure, with year-to-date outflows going down to $ 27.4 billion – 52% below The total was $ 41.7 billion last yearaccording to data from Coinshares.
The main market drivers are “off the cards”
Responding to the previous major catalysts of the market, the cryptoquant mentioned the victory of the presidential election of Donald Trump in 2024, which pushed Bitcoin above $100,000 for the first time in early December.
In 2025, the launch of several Bitcoin Treasury companies pushed Bitcoin above $120,000 in August. “These catalysts are now gone,” the report states, adding:
“What will be a catalyst big enough to reaccelerate bitcoin demand in 2026? Major developments seem to be on the cards (US Gov Strategic Bitcoin Reserve) or a steep market discount (fed by falling interest rates).”
The downward trend is potentially aligned with a four-year cycle, mirroring previous cycles that lasted four years, including 2014–2017 and 2018–2021, the cryptoquant noted, adding that the current cycle (2022–2025) ended under this criterion.
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“Does this indicate a rapid fall in the price of Bitcoin? No. Right now, Bitcoin is experiencing a 28% drawdown and has declined towards key support levels of $90,000-$92,000,” the report said, adding:
“Even in bear markets, prices can rally 40% –50% in a few months. However, now that the price of Bitcoin is below the 365-day MA, this level is becoming a strong price resistance ($102.6k).”
Cryptoquant’s report comes hours before Bitcoin briefly dipped below $90,000 on Wednesday, with the price dropping to $88,400, the lowest price point since April 2025. according on Coinbase. The cryptocurrency has since recovered slightly, trading around $91,650 at press time.
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