CryptoQuant Warns of Bitcoin Bear Market With $70K Price Target

The cryptocurrency market has entered a critical phase as fresh data points toward growing downside pressure. CryptoQuant now suggests that Bitcoin has likely transitioned into a bear phase, based on several widely tracked on-chain indicators. This assessment has triggered renewed concern among traders, long-term holders, and institutional participants. After months of volatile price movement, market sentiment now reflects caution rather than confidence. The discussion around a Bitcoin bear market no longer feels speculative, as analysts increasingly rely on measurable data instead of emotion.

CryptoQuant’s findings highlight weakening demand dynamics and shifting investor behavior across the network. The report notes that capital inflows have slowed while selling pressure has gradually increased. These changes often mark early signs of prolonged market downturns. As Bitcoin struggles to reclaim strong momentum, investors have started adjusting expectations for the coming quarters. 

⚠️ALERT: THE CRYPTO BEAR MARKET HAS BEGUN

CryptoQuant now says Bitcoin has likely entered a bear market phase.

The report says $BTC could drop to $70K in 3–6 months, and as low as $56K later in H2 2026. pic.twitter.com/DAeOx5tXiZ

— Coin Bureau (@coinbureau) December 20, 2025

Why CryptoQuant Believes the Bitcoin Bear Market Has Begun

CryptoQuant analysis points to distribution activity from long-term holders as a major warning sign. Historically, these investors sell only when they expect limited upside in the near future. Recent data shows a steady rise in coins moving toward exchanges, which often precedes increased selling activity. This pattern appeared during previous downturns and aligns closely with current market behavior. The consistency of these signals strengthens the case for a Bitcoin bear market forming beneath the surface.

A major reason for this decline in realized profits is that investors no longer see as many opportunities to realize profit from their investments in Bitcoin. As a result of this declining trend, it appears that there is a lack of confidence from investors regarding the potential for future price appreciation. The slowdown in the amount of profits being taken indicates a decline in bullish market momentum, which is consistent with CryptoQuant’s findings that also show declining rates of Bitcoin transaction growth. 

Bitcoin Price Prediction Shows Risk of Drop Toward 70,000

According to CryptoQuant’s Bitcoin price prediction, the asset could slide toward the 70,000 level within the next three to six months. This projection stems from declining demand strength and slower capital rotation into Bitcoin markets. Without aggressive buying pressure, prices often drift lower over time. Analysts view the 70,000 zone as a psychological support area that could attract temporary stabilization.

However, CryptoQuant analysis warns that holding this level remains uncertain if macroeconomic conditions remain tight. Rising interest rates and cautious investor sentiment continue to weigh on risk assets globally. Bitcoin often reacts sharply to broader financial stress, especially during liquidity-driven downturns. If demand fails to recover, this Bitcoin price prediction may become increasingly realistic rather than conservative.

Extended Downside Risks Could Stretch Into 2026

CryptoQuant presents a longer-term outlook for a bearish market combined with persistent selling pressure on Bitcoin combined with worsening macroeconomic environment possibly bringing the price of Bitcoin back to around $56,000. This timeline would be similar to prior bearish cycles which have lasted longer than expected, demonstrating the long-term impact of such cycles on investors’ patience.

Approximately 40% of previous Bitcoin bear market cycles experienced upside price swings prior to forming new lows; therefore, investors should prepare for such market movements. Based on the analysis conducted by CryptoQuant, robust catalysts such as renewed institutional interest and favourable monetary policies must exist if there is to be a prolonged bullish trend; otherwise, downside risk remains highly prevalent.

What Comes Next for Bitcoin

The direction that bitcoin goes in next is going to be based on two broad variables: the recovery of bitcoin’s overall demand as well as the recovery of the large-scale economy. A resurgence of new buyers into the bitcoin market, a de-escalation of financial market stress, and an increase in trust and faith in the overall cryptocurrency market may allow for general stabilization of bitcoin prices.

By contextualizing the current bitcoin bear market environment, investors have a clear-looking glass into where they can navigate the uncertainty surrounding bitcoin. This is far more useful, in comparison to simply trying to follow the price movements of bitcoin on a daily basis; by concentrating on structures and data, the next steps towards future profitability become apparent with greater certainty.