Bitcoin Bull-Bear Cycle Indicator Drops To Deepest Level Since FTX Bottom
On-chain knowledge reveals CryptoQuant’s Bitcoin Bull-Bear Market Cycle Indicator has witnessed a deep plunge into the bearish territory just lately.
Bitcoin Bull-Bear Cycle Indicator Now Most Bearish Since 2022 Bottom
In a brand new post on X, CryptoQuant neighborhood analyst Maartunn has talked in regards to the newest development within the CryptoQuant Bitcoin Bull-Bear Market Cycle Indicator. This metric tells us, as its identify suggests, in regards to the market section that the cryptocurrency is at present inside.
The indicator is predicated on one other CryptoQuant metric known as the P&L Index, which mixes the information of key on-chain indicators to construct a single valuation index for Bitcoin. More particularly, the metrics that the P&L Index makes use of are the MVRV Ratio, NUPL, and LTH/STH SOPR.
The MVRV Ratio and NUPL each cope with unrealized community income/losses, whereas the LTH/STH SOPR with income/losses being realized by the traders by means of their transactions.
According to CryptoQuant, the P&L Index’s interactions with its 365-day MA sign whether or not the asset is switching to a bull or bear market. Breaks above the MA point out that the cryptocurrency is transferring right into a bullish regime, whereas falls under it could actually sign a bearish transition.
The CryptoQuant Bitcoin Bull-Bear Market Cycle Indicator tracks the gap between the P&L Index and its 365-day MA to showcase whether or not the market is transitioning or if the metric is valued at an excessive.
Now, right here is the chart for the indicator shared by Maartunn that reveals how its worth has modified over the previous decade:
As displayed within the above graph, the CryptoQuant Bitcoin Bull-Bear Market Cycle Indicator plunged into the area under zero throughout the previous few months of 2025, suggesting that the P&L Index crossed under its 365-day MA.
As talked about earlier, such a crossover is an indication of a bearish shift. Since the indicator has gone into this zone, its worth has solely fallen deeper because the cryptocurrency has seen its adverse worth motion. Following the newest drop, the metric has hit low ranges not seen for the reason that 2022 bear market backside that adopted the FTX crash.
The development is a sign that the P&L Index is approaching an excessive level under the 365-day MA. In the previous, market lows have typically been reached alongside such values on the index.
That stated, the CryptoQuant Bitcoin Bull-Bear Market Cycle Indicator has normally spent a little bit of time within the “excessive bear” zone earlier than the cryptocurrency has discovered a reversal. It now stays to be seen how lengthy the metric will take this time round.
BTC Price
At the time of writing, Bitcoin is floating round $68,000, down 4% within the final seven days.
