🚨💰 CryptoQuant warns Bitcoin may be entering a bear market, with possible pullbacks to $70K or even $56K📉🚨.
📉 Why CryptoQuant Is Bearish
• Demand growth has stalled/turned negative, a pattern historically seen near cycle tops.
• ETF inflows have slowed and, at times, flipped to outflows — reducing passive institutional support.
• Long-term holders are distributing into strength, signaling profit-taking rather than accumulation.
• Derivatives risk appetite is fading, with lower leverage and contracting open interest.
• Liquidity conditions are tightening, limiting dip-buying power.
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🎯 Key Downside Scenarios (Conditional, Not Predictions)
• ~$70K → First major stress level if demand weakness continues.
• ~$56K → Deeper bear-market scenario if selling pressure accelerates and liquidity stays weak.
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🧠 Bear Market vs Deep Correction
• Bear Case: Demand contraction persists → key supports fail → extended downside.
• Alternative View: This is a mid-cycle reset (leverage flush + consolidation). If ETF flows, stablecoin liquidity, and on-chain demand recover, the broader bull structure could remain intact.
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🔍 What to Watch Next (Invalidation/Confirmation)
• ETF flows turning decisively positive
• Stablecoin supply growth (fresh buying power)
• Derivatives revival (OI and volume expansion)
• On-chain metrics (SOPR, MVRV) stabilizing back into bullish ranges
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🧭 Bottom Line
CryptoQuant’s signal flags elevated downside risk, not a confirmed bear market.
$70K–$56K are risk zones, while recovery in demand and liquidity would invalidate the bearish thesis. Stay level-focused and patient.
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