An indicator by CryptoQuant suggests that Bitcoin has moved into a bearish phase following a recent crash.
CryptoQuant’s Indicator Shifts to Negative
In a recent update on X, CryptoQuant’s Head of Research Julio Moreno discussed the Bull-Bear Market Cycle Indicator created by the analytics firm.
This metric is based on CryptoQuant’s P&L Index, which combines various on-chain indicators related to profit/loss.
The P&L Index helps determine whether BTC is in a bull or bear market. Crossing above its 365-day moving average signals a bullish phase, while dropping below indicates a bearish transition.
The Bull-Bear Market Cycle Indicator tracks the P&L Index’s distance from its 365-day MA.
The chart illustrates the trend in this Bitcoin indicator over the past years.
The Bitcoin Bull-Bear Market Cycle Indicator surged earlier this year when the price hit an all-time high, entering the “overheated bull” territory.
The indicator has now dropped below zero, indicating a bear phase for Bitcoin, a signal not seen since January 2023.
However, this bearish signal may not necessarily imply an extended bear market, as observed in previous temporary bear phases signaled by the indicator.
Bitcoin’s Current Price
Currently, Bitcoin is trading just below $57,000, reflecting a nearly 14% decline over the past week.
