Bitcoin Bear Market Is Moving 4x Faster Than 2022: CryptoQuant Warns of $60K Retest

Bitcoin Bear Market Accelerates: CryptoQuant Flags Faster Decline Than 2022 Cycle

Bitcoin (BTC) remains trapped in a prolonged downturn, unable to mount a meaningful recovery since the sharp crash that began in October 2025. The leading cryptocurrency has now tested the $70,000 level amid persistent selling pressure, while altcoins face even steeper losses across the board.

On-chain analytics firm CryptoQuant has issued a stark assessment, confirming that Bitcoin has entered a full bear market phase. The current cycle shows more aggressive negative momentum compared to the early 2022 bear market, despite starting from a relatively weaker position.

CryptoQuant's Key Bear Market Comparison

CryptoQuant highlighted that Bitcoin first fell below its 365-day moving average in early November 2025—a critical technical threshold that has historically marked regime shifts from bull to bear conditions. Since that breakdown, BTC has shed approximately 23% of its value over roughly 83 days.

This pace significantly outstrips the performance seen in the comparable period of early 2022, when the same metric showed only a 6% decline. Analysts interpret this as evidence that downward momentum is deteriorating more rapidly in the present environment.

The firm noted that the bear market "got off to a weaker start compared to 2022," but the subsequent loss of momentum has accelerated sharply. This faster erosion suggests underlying structural weakness, with demand indicators failing to provide adequate support.

Technical Breakdown and Support Levels at Risk

Bitcoin's breach of the 365-day moving average represents a major shift. The indicator, which smooths price action over a full year, often acts as dynamic support in bull phases and resistance in bears. Failure to reclaim it has preceded extended declines in prior cycles.

CryptoQuant emphasized the loss of key on-chain support levels, signaling elevated downside risk. The firm projected a potential retest of the $70,000 to $60,000 range as selling pressure persists and liquidity conditions tighten.

Broader market sentiment reflects this caution. The Fear and Greed Index has plunged into "extreme fear" territory, reaching levels rarely seen outside major capitulation events. Institutional flows, including spot Bitcoin ETFs, have turned net negative in recent months, reversing the strong inflows that characterized earlier periods.

Current Bitcoin Price and Market Conditions

As of the latest data on February 5, 2026, Bitcoin trades around $69,500 to $71,000, having briefly dipped below $70,000—its lowest level since November 2024. The asset has erased substantial portions of its post-election gains, sitting roughly 40% below the October 2025 peak above $126,000.

Trading volume remains elevated amid the sell-off, but with heavy liquidations reported across derivatives markets. Altcoins have underperformed even more severely, amplifying the bearish pressure on the broader cryptocurrency ecosystem.

Factors Driving the Accelerated Decline

Several elements contribute to the steeper momentum loss:

• Reversed institutional demand — Spot ETFs have shifted to net selling, creating a significant gap compared to prior years.
• Liquidity contraction — Stablecoin growth has stalled or turned negative, reducing available capital for risk assets.
• Weak spot demand — Metrics like the Coinbase Premium indicate subdued U.S. investor participation.
• Macro headwinds — Broader risk-off sentiment in equities and other markets has spilled over into crypto.

CryptoQuant's research head has suggested that bear market bottoms historically take months to form, potentially pointing to a credible stabilization window no earlier than Q3 2026 if demand and liquidity fail to rebound sooner.

Outlook and Implications for Traders

While Bitcoin has shown resilience through multiple cycles, the current setup mirrors challenging periods like early 2022 but with faster deterioration. The rapid 23% drop post-365-day MA breach underscores vulnerability, particularly if key psychological levels like $70,000 fail to hold.

Investors face heightened uncertainty. Sustained trading below major supports could extend the correction, while any reversal in ETF flows or improved macro conditions might spark a relief rally. For now, the technical and on-chain picture favors caution, with CryptoQuant's analysis serving as a clear warning of deeper downside potential.

The cryptocurrency market's path forward hinges on whether fresh capital can re-enter and stabilize sentiment, or if the accelerated bear dynamics continue to dominate.

Georgi Shopov publication: "Bitcoin Bear Market Is Moving 4x Faster Than 2022: CryptoQuant Warns of $60K Retest" was written for 24crypto.news

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