Bitcoin price has fallen below $100,000 and the 365-day moving average, pushing Cryptoquant’s Bull Score Index to zero, a signal that experts warn echoes the start of the 2022 bear market.
Bitcoin has fallen under the critical $100,000 threshold for the first time in months. This significant drop has led to a serious warning being made by the on-chain firm Cryptoquant. Bitcoin’s price action is now ominously reflecting the technical structure seen ahead of the bear market of 2022. Therefore, as evident from Cryptoquant’s latest report, the market is currently experiencing an extremely bearish sentiment. The company’s important Bull Score Index has plunged to zero.
The detailed analysis shows that Bitcoin is currently trading below its very important 365-day Moving Average (MA). This long-term average is near $102,000. Its strong violation is a serious blow to the overall market momentum.
The downward price movement was fueled by a number of powerful and simultaneous forces. Besides, the slump was mainly propelled by increased selling pressure from short-term holders of stocks. Furthermore, increased leverage throughout the market helped in increasing the recent price movements. This combination had the effect of initiating a rapid and dramatic liquidation feedback loop.
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Cryptoquant researchers caution explicitly that the inability to reclaim this key moving average swiftly may “cause a much larger correction.” The 365-day MA is thought by many to be the “ultimate support” of all bull cycles. It becomes a dangerous breakpoint for the long-term trend traders. Thus, the failure to recover above $102,000 validates a serious macro change.
This moving average is a very technical and psychological level for a trader. On the other hand, it was the last time it had a floor when the 2022 crash happened. The fact that this line is no longer being supported in the price is a notable and significant bearish development. The continued failure to support this position reflects a fundamental change in the supply and demand.
The current weakening momentum indicates that the current market demand is not strong enough to absorb the current market supply. On the other hand, the recovery above the $102,000 MA should be quick and prompt. This move would help to break the bearish setup in place. Traders and investors are watching for confirmation of an extended downturn, like the 2022 crypto winter.
Some bullish analysts continue to see a possible stabilization in the $100,000 to $110,000 area, whereas some have been quick to revise their 2025 year-end forecasts lower. The next support levels are now put under severe test by traders. Network valuation models indicate that the next target is close to $91,000. In addition, a deeper corrective phase seems possible at the $72,000 level.
Their targets are lower targets based on various on-chain realized price bands and technical indicators. Therefore, when the zero-peaked Bull Score Index and MA breach are combined, an extremely cautious view is formed. The market requires fundamental reforms to reverse the negative trend that is now evident. The emphasis is still on the short-term holder selling behaviour. Finally, this type of market structure has many similarities with periods of deep contraction.
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