According to the latest report from CryptoQuant, Bitcoin (BTC) is at a "critical point", with multiple on-chain indicators showing further downside risks, while whales are experiencing the fastest Bitcoin accumulation rate in a year.

Since hitting a new high in March, Bitcoin prices have been on a downward trend, falling to a two-month low of $53,500 on July 5. Despite a rebound above $57,000, the German government's continued Bitcoin sales and Mt. Gox repayments remain a threat to BTC.

CryptoQuant reports that the profit and loss (P&L) index is hovering near the 365-day moving average (MA). If it falls below this line, Bitcoin may enter a major correction. In addition, the bull-bear market cycle indicator is close to a key level, and if the price falls further, it may switch to a bear market.

Meanwhile, Bitcoin whales have been actively accumulating during the recent decline, increasing their holdings by 6.3% over the past month. Institutional investors also poured into spot Bitcoin ETFs in early July, showing rising demand for BTC.

From a technical perspective, Bitcoin faces short-term resistance at $59,000, supported by the 200-day simple moving average (SMA). Bulls need to flip it back into support to avoid further losses.