CryptoQuant CEO: Bitcoin's Current Bear Market Will Not See Another Significant Drop, May Consolidate in the Next Few Months

Bitcoin is navigating a bear market, with analysts suggesting a period of consolidation may follow. Market indicators, including on-chain activity and institutional behavior, point to a slowdown in price volatility. The cryptocurrency's price has seen a recent retest of key support levels but shows signs of stabilizing according to recent research.

CryptoQuant CEO Ki Young Ju stated that Bitcoin is unlikely to experience another significant price drop in its current bear market. This is due to more diversified liquidity channels and the behavior of long-term institutional holders, which have shifted from a 'whale dump' pattern seen in previous cycles according to on-chain data.

Julio Moreno of CryptoQuant highlighted Bitcoin's weakened demand as a core factor in the bearish outlook. According to on-chain metrics, the market has already entered a bear phase since November 2025.

Why Did This Happen?

Bitcoin's price has been caught in a tug-of-war between bullish and bearish forces. Analysts point to structural shifts in demand, including reduced inflows into spot ETFs and a lack of institutional accumulation. These factors are signaling a broader weakening in Bitcoin's demand engine.

The bear market has been reinforced by the absence of new speculative inflows. Unlike in previous years, the current market lacks the tailwinds from regulatory clarity or widespread adoption by corporations. This has led to a structural contraction in demand.

How Did Markets React?

Bitcoin's price is currently trading in a narrow range between $86,400 to $90,600. This range-bound action suggests a balance between buyers and sellers.

Prediction markets on platforms like Polymarket indicate subdued expectations for Bitcoin in 2026. The odds of BTC hitting $150,000 before 2027 are currently at 21%.

Investor sentiment is mixed. While some analysts like K33 see catalysts such as Fed rate cuts and regulatory clarity as bullish for 2026, others like Keith Alan of Material Indicators warn of a retest of the $87,500 level.

What Are Analysts Watching Next?

CryptoQuant and other analysts are closely monitoring on-chain metrics for signs of a potential bottom. A price range of $56,000 to $60,000 is seen as a potential support zone.

Bitcoin's path forward depends on whether institutional demand can recover. If on-chain indicators show a return to accumulation, it could signal the end of the bear phase.

Investors are also watching for macroeconomic catalysts. The Fed's rate-cut cycle and potential changes in U.S. crypto legislation could impact Bitcoin's valuation and adoption.

Bitcoin's current valuation is considered attractive by some analysts. It is trading well below its all-time highs and has seen a 44% drawdown from its peak. K33 views this as a valuation opportunity.

Bitcoin's market structure has changed. Spot trading volumes have hit year-long lows, making the market more fragile and prone to price swings on smaller trades.

Investors are advised to remain cautious. While some models predict a potential rebound, the market remains volatile and subject to sudden shifts in sentiment.