Bitcoin Bull Market Over? CryptoQuant Predicts Bearish Phase Ahead

Bitcoin's bull market may be fading, according to CryptoQuant founder Ki Young Ju. He expects 6-12 months of bearish or sideways price action due to declining market liquidity.

Ju highlighted stalled on-chain realized cap and three consecutive weeks of outflows from BlackRock’s IBIT ETF as signs of weak capital inflows. Despite Bitcoin reaching record trading volumes near $100K, its price barely moved, indicating a lack of new liquidity to counter selling pressure.

A CryptoQuant report suggests BTC could revisit $63K, with key indicators signaling bearish momentum. The MVRV Ratio Z-score, which assesses whether Bitcoin is overbought or oversold, has dropped below its 365-day moving average. Historically, this signals deeper corrections or the start of bear markets.

The $75K-$78K support zone is crucial, analysts warn. Slowing whale accumulation and net selling by U.S.-based spot ETFs are adding downward pressure, raising the risk of a larger price drop.

Market sentiment aligns with this outlook. LMAX Group’s Joel Kruger and Coinbase Institutional’s David Duong caution that ongoing economic uncertainty and weak U.S. equities could intensify crypto’s bearish trend. Stagflation concerns further complicate the outlook.

According to Polymarket, there’s a 51% probability BTC will stay between $81K-$87K this week, while a 31% chance remains for a dip to $75K by month’s end.

Bitcoin has dropped 15% over the past month, erasing post-election gains, according to CoinDesk Indices. With liquidity concerns mounting, the market could face prolonged weakness unless fresh capital enters.