Bitcoin has recently declined below the critical $100,000 level for the first time in several months, with new data from Cryptoquant indicating this movement may parallel technical patterns observed before the 2022 bear market. According to the analytics firm’s latest market assessment, Bitcoin’s breach of its 365-day moving average represents a significant technical development that historically correlates with extended downward trends.
The research highlights that Cryptoquant’s proprietary Bull Score Index has plummeted to zero, reflecting deteriorating market sentiment among institutional and retail investors. This metric, which aggregates multiple on-chain and trading indicators, previously reached similar levels during the early stages of the 2022 crypto winter.
Market analysts note that sustained trading below the annual moving average typically indicates weakening bullish momentum and could potentially trigger further selling pressure. The current technical setup suggests Bitcoin may face additional downward movement unless key support levels are reclaimed. While historical patterns don’t guarantee future performance, the convergence of these technical factors warrants close monitoring by market participants navigating the current volatility.
Traders are advised to watch for potential stabilization around established support zones and monitor volume patterns for confirmation of either recovery or continued correction phases in the coming weeks.
