Bitcoin Breaks Key Support Level That Confirmed the 2022 Bear Market: CryptoQuant
Bitcoin’s momentum has weakened sharply this week, breaking under a key help zone that traditionally marked the transition from bull markets to bear phases.
After months of consolidation above the six-figure threshold, Bitcoin slipped underneath $100,000, elevating fears {that a} deeper correction may unfold if worth restoration fails to materialize quickly.
According to CryptoQuant’s Bull Score Index, market sentiment has turned extraordinarily bearish, dropping to zero for the first time since June 2022—a studying that beforehand coincided with the onset of the final main bear market.
As macro circumstances tighten and on-chain indicators soften, merchants are watching key help ranges intently to find out whether or not this pullback is a short lived correction or the starting of a protracted downtrend.
Bitcoin Falls Below the 365-Day Moving Average
The most alarming technical growth is Bitcoin’s fall under its 365-day transferring common (MA), presently round $102,000. This long-term indicator has served as a key line of protection all through the present cycle, appearing as each technical and psychological help.
Historically, when Bitcoin broke decisively under its 365-day MA—most notably in December 2021 to January 2022—it indicated the formal begin of a bear market.
Unless Bitcoin reclaims this degree shortly, analysts warn of a possible acceleration in promoting stress, with momentum merchants and algorithms prone to amplify draw back volatility.
On-chain Data Points to Possible Drop Toward $72K
The Traders’ On-chain Realized Price Bands additionally level to an elevated danger of additional draw back. These bands, which observe common acquisition costs for short-term holders, point out a decrease band close to $100K and a minimal band round $72K.
If Bitcoin stays under the $100K threshold for lengthy, merchants realizing losses may push costs towards that $72K help, marking a 28% drawdown from present ranges.
So far this cycle, the decrease band has acted as a dynamic help, cushioning retracements as weaker fingers capitulate. A breakdown under this vary would mark a structural shift in dealer conduct, mirroring patterns final seen in 2022.
Network Valuation Support Near $91K
Under the community valuation mannequin primarily based on Metcalfe’s regulation—which states a community’s worth grows proportionally to the sq. of its person base—Bitcoin’s subsequent key help lies round $91,000, akin to the 2x Metcalfe-Value band.
Bitcoin traded close to this valuation from November 2024 by way of May 2025, and a retest may stabilize the market briefly if investor participation stays regular.
With fundamentals weakening and confidence slipping, Bitcoin is once more testing that “purple skinny line” between a deep correction and a renewed rally—echoing the precarious dynamics that outlined the 2022 bear market.
The submit Bitcoin Breaks Key Support Level That Confirmed the 2022 Bear Market: CryptoQuant appeared first on Cryptonews.
