Bitcoin Bear-Cycle Return Looks Less Likely: CryptoQuant Analyst

What happened

A CryptoQuant analyst said Bitcoin's bear-cycle return appears less likely. The analyst noted fewer Bitcoin outputs are at a loss and identified $71,300 as a potential support level based on the active-supply cost basis, which is the average purchase price of actively traded coins.

Confirmed

Global impact / market context

If fewer Bitcoin units are held at a loss, sellers may have less reason to panic-sell, which could reduce downward price pressure. The $71,300 price level matters because it may act as a floor where buyers step in, helping stabilize investor confidence.

Analyst inference

Bitcoin prices often swing in cycles. This analysis suggests the current downturn may be milder than past bear markets. For investors, this implies they might see less severe losses, but prices could still drop if broader economic conditions worsen.

Analyst inference

What to watch

1. Watch whether Bitcoin's price holds above or falls below the $71,300 level, which the analyst flagged as potential support based on active-supply cost basis, meaning the average purchase price of coins in circulation. Confirmed
2. You could monitor the number of Bitcoin outputs at a loss over coming weeks. A steady decline would confirm fewer holders are underwater, which might strengthen the argument against a full bear cycle. Proposed
3. If Bitcoin dips near $71,300 and bounces, that would signal strong buyer demand. However, if it breaks below that level decisively, the bear-cycle risk could increase, prompting investors to reassess their positions. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• coindoo.com