According to BlockBeats, data from CryptoQuant indicates that the Bitcoin Profit and Loss Index is currently hovering near its 365-day moving average, a situation typically indicative of an impending major adjustment or the onset of a sustained bear market. This pattern was previously observed during the significant downturns that began in May and November of 2021.
CryptoQuant's Bitcoin bull-bear market cycle indicator is also nearing a critical level that suggests a transition into a bear market. The lack of growth in the market value of Tether (USDT) implies that a rebound may be difficult to achieve, as historical recoveries can almost always be attributed to an increase in stablecoin liquidity.
However, CryptoQuant's data also shows that Bitcoin whales have been increasing their holdings during the recent downward trend. In the past month, these large-scale holders have increased their holdings by 6.3%, the fastest rate since April 2023. The German government's massive sell-off appears to be nearing its end, with only 13,100 units remaining.
Other positive factors, such as the approval of Ethereum spot ETFs in the United States and the continued growth of the US stock index, suggest that despite signs of weakness in the short term, the upward trend is expected to continue in 2024.
