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Bitcoin, the world’s largest crypto, has recently entered a bearish phase, signaling weakening price strength after a prolonged rally that pushed BTC well above prior peaks. This transition from bullish momentum to bearish conditions has captured the attention of traders, analysts, and long-term investors alike.
In this blog, we break down the structural factors driving Bitcoin’s shift into a bearish phase, examine the indicators signaling market weakness, and outline the critical levels and metrics investors should monitor moving forward.
Let’s deep dive!
What Is a Bearish Phase?
In financial markets, including crypto markets, a bearish phase is an extended period during which prices trend downward, or traders expect further declines.
For Bitcoin, this shift is identified when:
- Price falls below key supporting levels,
- Long-term trend indicators flip negative,
- Market structure breaks down,
- Technical and on-chain data confirm weakening demand.
Unlike short-term pullbacks, a bearish phase often persists for weeks and months, reflecting broader sentiment and structural market changes.
Bitcoin’s Recent Price Drop Below $90k: Key Numbers and Trends
Bitcoin’s price action in the second half of 2025 shows why analysts are confident that the market is bearish:
- All-Time High Vs Current Price
Bitcoin reached an all-time high near $126,000 in October 2025.
By late November and December, BTC had declined more than 20% from that peak, dipping below $90,000, a major psychological level for the first time in months.
- Long-Term Momentum Breakdown
The technical structure shows Bitcoin below its 200-day moving average, often regarded as a trend benchmark. Breaking this level is widely interpreted as a bear market signal.
- Repeated Lower Highs & Lower Lows
Recent price movement has established lower highs and lower lows, a classic pattern confirming a shift from an uptrend to a downtrend.
Structural Indicators That Confirm Bearish Momentum
Multiple technical and market indicators have pointed toward a sustained bearish phase for Bitcoin:
a) Moving Averages
When a shorter-term moving average (like the 50-day) crosses below a longer-term moving average (like the 200-day), this is known as a “death cross,” a strong technical sign of bearish macro structure. Recent signals suggest this crossover has occurred or is imminent, indicating trend weakness rather than a temporary drop.
b) On-Chain Demand Weakening
Metrics from leading on-chain analytics tools show demand softening, a bearish indicator when buyers are no longer absorbing supply as aggressively. When institutional and retail demand decline together, price momentum weakens further.
c) Broken Support Zones
Bitcoin has breached several key technical support levels, including psychological thresholds like $100,000. Falling through these zones typically attracts selling pressure and extends downward trends.
Macro and Cycle Factors Behind the Downtrend
Bitcoin’s bearish phase isn’t just technical; broader market dynamics and potential cycle shifts are also contributing:
a) End of Bullish Momentum
Bitcoin’s surge above $120,000 earlier in 2025 lost steam in mid-year, and the lack of continuation suggests the prior upward momentum may have peaked, initiating a corrective phase.
b) Cycle Discussion
Traditional Bitcoin market cycles, typically ~4 years tied to halving events, appeared disrupted in 2025. Some analysts argue that the historical cycle pattern might be inverted or broken, as BTC peaked earlier than expected and then declined into a structure resembling a bear market.
c) Liquidity Conditions and Institutional Flows
While institutional demand fueled much of BTC’s rallies during 2024, some data indicate that inflows have slowed, shifting investor behavior toward profit-taking and repositioning, reducing buy pressure at higher levels.
Levels and Signals to Watch Next
Here are the critical price levels and indicators that will help confirm whether the bearish phase deepens or begins reversing:
Support Levels
$90,000–$95,000 region: Immediate technical support zone.
$80,000 area: A deeper support that could anchor buyers.
$74,000: A possible washout target if bearish momentum intensifies.
Resistance Levels for Reversal
$100,000: Key psychological barrier.
$110,000–$120,000: Thresholds needed to restore bullish structure.
Indicator Signals
200-day moving average trend: Sustain above signals possible trend change.
Volume & demand growth: Higher buy volume could signal the beginning of accumulation.
Bearish Phase Vs Crash: What’s the Difference?
It’s important to differentiate between a bear market and a market crash:
- A bear market is characterized by prolonged declines and negative sentiment.
- A market crash is swift and severe, usually triggered by external shocks.
The current Bitcoin bearish phase is gradual, driven by technical breakdowns and cycle dynamics, not sudden systemic collapse, though both can coexist when selling accelerates.
What Does This Mean For Investors?
- Long-term investors (HODLers): Bearish phases can be seen as potential accumulation periods but require discipline and risk tolerance.
- Traders: Technical signals define short-term positions; bearish momentum favors shorting or cautious entries.
- Risk managers: Tight risk controls, stop limits, and diversification become critical during extended downturns.
Bitcoin is Bearish But Not Broken
Bitcoin has clearly entered a bearish phase, driven by technical breakdowns below key support levels, weakening demand signals, and cyclical forces that are stalling upward momentum. While the long-term narrative of Bitcoin technology remains intact, short-term price action reflects caution, structural weakness, and a market that’s digesting prior gains. The coming months will reveal whether BTC finds solid support around psychological levels or continues lower before bottoming.
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