The cryptocurrency sector has recently hit turbulent waters, as a significant downturn has prompted observers to compare the ongoing bear market to past cycles. Findings from CryptoQuant indicate the current decline is unfolding with alarming swiftness and severity compared to 2022. Bitcoin‘s value has notably slumped below crucial technical thresholds, casting a shadow over investor sentiment.
Can Technical Indicators Offer Respite?
CryptoQuant’s recent data highlights how Bitcoin’s dip below the 365-day moving average this November led to a 23% fall within just 83 days, starkly outpacing the 6% drop observed at the start of 2022. This rapid decline highlights a growing concern regarding the market’s current trajectory.
In early October, Bitcoin reached an impressive $126,000, buoyed by an 80 reading on the “Bull Score Index.” However, a sudden spate of liquidations on October 10 caused this index to nosedive to zero, with the Bitcoin price retreating to $71,000. This sharp decrease underscores systemic vulnerabilities within the market framework.
Will Investor Sentiment Fuel Recovery?
According to data from Santiment, negative perceptions around Bitcoin and Ethereum have taken hold following recent precipitous falls. This mood, paradoxically, could set the stage for short-lived recoveries, as historical patterns show markets frequently move opposite to general retail sentiment.
Glassnode’s insights further reveal escalating realized losses and profitability recalibrations, marking the bear market’s deepening intensity. The withdrawal of leveraged positions and weak spot buying demand exacerbate price pressures, compounded by the Fear and Greed Index plummeting to 12.
• Total cryptocurrency market capitalization fell 4.4% to $2.53 trillion, marking a nadir since April 2025.
• Bitcoin slipped under $71,000, setting sights on a $65,000 support level.
• Ethereum dropped below $2,100, while altcoins endured severe losses, with some depreciating by 80% from peak values.
Amid this precarious climate,
“market dynamics remain unpredictable,” said experts at CryptoQuant, highlighting the intricate balance between technical indicators and investor sentiment in shaping future trends.
The crypto market now stands on uncertain ground, searching for stability amid relentless volatility.
