Bitcoin Risks Downtrend After Hitting Key Bear Market Level, CryptoQuant Warns

Bitcoin may be entering a risky phase after reaching a key technical level that has historically acted as a strong resistance point during bear markets, according to analysis from CryptoQuant.

The firm said Bitcoin recently touched its 200-day moving average near $82,400 after a strong six week rally that began in early April, when prices were closer to $66,000. This level is widely watched by traders as a major trend indicator.

CryptoQuant noted that similar conditions in past cycles, especially during 2022, led to further price declines after Bitcoin failed to break above this level.

Alongside resistance pressure, on chain data suggests traders may already be locking in profits. The report highlighted that unrealized profit margins recently reached about 17.7%, the highest since mid-last year, which often signals rising selling pressure.

The firm also pointed out that realized profits surged sharply earlier this month, with roughly 14,600 Bitcoin moved at a profit, worth close to $1.2 billion. Such spikes in profit-taking have historically preceded local price peaks in short-term rallies.

Key Support Levels and Market Outlook

If Bitcoin fails to hold current levels, analysts see potential support around $70,000, which represents a broad average cost base for many market participants.

Despite the cautious outlook, some analysts remain bullish. A few traders believe regulatory progress, including movement on the CLARITY Act in the US, could trigger another upward push. Others argue that macroeconomic pressures and inflation trends may still support long-term demand for Bitcoin as an alternative asset.