Currently, Bitcoin's price hovers around $81,000, just below a crucial support level, with analysts warning of a potential drop to $63,000 if it fails to hold this support.

The decrease in BTC inflow to American exchanges, which has fallen below the 90-day moving average, further underscores the weakening demand for Bitcoin.

The Bitcoin Bull-Bear Market Cycle Indicator has reached its most bearish level in this cycle, signaling potential downturns ahead.

Historical trends suggest that when both the MVRV Ratio and the Bull-Bear Market Cycle Indicator hit current levels, Bitcoin often faces sharp corrections or enters a bear market.

In 2025, U.S.-based spot ETFs have shifted to become net sellers of Bitcoin, a stark contrast to their previous purchasing behavior, which adds further downward pressure on prices.

Demand for Bitcoin is contracting significantly, with major whales reducing their accumulation pace, reflecting buyer hesitation and a notable decline in demand.

In just one week, Bitcoin demand decreased by 103,000 BTC, marking the fastest contraction since July 2024, indicating weakened market support.

The broader crypto market has seen a 6% drop, driven by investor anxiety linked to President Trump's trade policies, resulting in sell-offs across risk assets.

While corrections during bull markets are not unusual, current valuation metrics suggest that Bitcoin may be experiencing deeper corrections than typically expected.

CryptoQuant analysts indicate that Bitcoin's valuation metrics suggest it is at a critical juncture, potentially signaling the onset of a bear market.

The annual accumulation rate for large investors has dropped significantly, from 368,000 BTC in January to 268,000 BTC currently, reflecting a shift in investment behavior.

Investors are increasingly questioning whether the current bearish indicators are merely temporary or indicative of deeper structural vulnerabilities within the Bitcoin market.