Bitcoin Could Be at Deep Value Levels or Start of a Bear Market: CryptoQuant

Bitcoin’s valuation metrics are pointing to bearish territory, and according to a CryptoQuant analyst, the market may be teetering between deep value levels and the onset of a bear market.

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CryptoQuant’s analysis, published on March 11, reveals that nearly every major indicator now signals caution.

The Bitcoin Bull-Bear Market Cycle Indicator is currently at its most bearish level this cycle—a level that, in previous cycles, has either preceded a sharp correction or marked the beginning of a downturn.

In parallel, the MVRV Ratio Z-score has fallen below its 365-day moving average, suggesting that Bitcoin’s previously sustained upward momentum has markedly dissipated.

This shift in sentiment can be seen by the noticeable contraction in Bitcoin demand.

Recently, the apparent demand growth for Bitcoin dropped by 103,000 BTC in a single week, representing the fastest pace of contraction observed since July 2024.

Bitcoin Whales Slow Accumulation, Signaling Reduced Demand

This steep decline indicates clear buyer hesitation and weakening market support.

Major whales, who have traditionally played a role in driving market movements through their huge accumulations, have also slowed their rate of Bitcoin acquisition.

U.S.-based spot ETFs have transitioned into net sellers of Bitcoin this year, further adding downward pressure on prices.

While Bitcoin’s current 22% price drawdown might seem in line with corrections experienced during previous bull market cycles, the valuation metrics paint a more concerning picture.

The metrics indicate that this is not a typical pullback but rather a deeper, more fundamental correction.

Bitcoin is trading around $81,000 as of writing—a range slightly below the trader’s on-chain realized price lower band, a key support level.

This precarious position was compounded Tuesday as the broader crypto market shed 6% amid investor anxiety triggered by President Donald Trump’s latest trade policies.

Heightened tensions over tariffs targeting major U.S. trading partners—Canada, Mexico, and China—have rattled markets, prompting a wave of sell-offs across risk assets

Should Bitcoin fail to maintain this support, its next major target is around $63,000.

This level corresponds with the Trader’s minimum on-chain realized price band, a threshold that has historically acted as the ultimate safety net during severe price corrections.

The insights provided by the CryptoQuant analyst highlight a convergence of factors that are amplifying market uncertainty.

Given the bearish signals, reduced demand, slowing whale accumulation, and ETFs becoming net sellers, Bitcoin’s market stands at a critical juncture.

Investors face an essential question: Are these indicators simply short-term anomalies, or do they signify deeper, structural vulnerabilities in the Bitcoin market?

How stakeholders interpret these signals in the coming weeks could determine whether Bitcoin rebounds strongly or slips further into bearish territory.

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