Bitcoin Decline: On-Chain Warning Signals as Bear Market Intensifies

2025-12-26 19:20:37

Currently, Bitcoin (BTC) is experiencing a difficult phase with a price around $87.28K, down 0.94% in the past 24 hours. This situation reflects a significant shift in investor sentiment as fundamental indicators show that buying demand is weakening considerably.

On-Chain Signs Signal a Bear Market

Data from on-chain analysts reveal that buying pressure has fallen below normal levels. The development of Bitcoin wallets is nearly stagnant, while Bitcoin ETF funds in the US are also reducing their positions. These changes indicate that institutional investors are no longer optimistic.

A notable indicator is that the funding rate on perpetual futures contracts has dropped to its lowest level in years. This suggests that long-term confidence is waning, and the current market complexity is putting downward pressure on prices.

Key Support Levels to Watch

Analysts forecast that Bitcoin could find support at $70,000 if the decline continues. However, if this level is broken, the path down to $56,000 is not impossible. This scenario serves as a reminder to traders that a bear market could persist if macroeconomic factors continue to exert negative influence.

On-chain signals indicating declining demand are clear warnings that Bitcoin faces significant challenges in the short term.

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