Viewpoint: Five key indicators suggest that Bitcoin may enter a Bear Market in early 2026.

GateUser-6433627c · 2025-12-23T03:03:39+00:00

Bitcoin may enter a Bear Market in early 2026, as five key indicators show rising downside risks, including a slowdown in demand growth, weakened ETF inflows, medium-sized investors reducing positions, declining funding rates, and falling below the 365-day moving average. Historical data shows that if a Bear Market takes shape, $56,000 may become a long-term support range.

GateUser-6433627c

2025-12-23 03:03:39

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[Opinion: Five Major Indicators Show Bitcoin May Enter Bear Market in Early 2026] According to Beincrypto, as of December 22, Bitcoin is maintaining in the range of $88,000 to $90,000, but multiple on-chain and market structure indicators show rising downside risks, suggesting the market may be entering the distribution phase at the end of the cycle. Five major warning signs: Slowing demand growth: Apparent demand growth is slowing, and strong prices mainly rely on leverage rather than spot buying. ETF inflows weaken: In the fourth quarter of 2025, the inflow of funds into the US spot Bitcoin ETF significantly slows. Medium-sized investors reduce their holdings: The annual reduction in wallet holdings of 100 to 1,000 BTC has widened. Funding rates decline: Major exchanges are experiencing a downward trend in funding rates, with weakened demand for leverage. Break below the 365-day moving average: this is the first continuous break below this long-term trend indicator since early 2022. Historical data shows that if a Bear Market takes shape, a Bitcoin price of around $56,000 could become a long-term support range.

BTC-1,56%

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