Bitcoin Demand Grows Amid Persistent Bear Market Conditions
Bitcoin Demand Rises, Yet Bear Market Persists
The cryptocurrency community was taken aback as Bitcoin surpassed the $94,000 resistance level last week, sparking debate over whether this signals a bear market rally or the onset of a bull run. According to CryptoQuant, a blockchain analytics firm, while Bitcoin demand is showing signs of improvement, the overall market remains bearish.
CryptoQuant's Analysis: Bear Market Lingers
On January 16, CryptoQuant reported that Bitcoin's demand conditions are less negative after the recent rise above $97,000. Despite this, the price remains below the 365-day moving average, a critical indicator of market trends. Since breaching this level in late November 2025, Bitcoin has increased by about 21%.
However, the 365-day moving average, which is currently near $101,000, still acts as a significant resistance point. CryptoQuant notes that this level often triggers price rejections during bear markets.
While some indicators, such as the Coinbase Premium, briefly turned positive, U.S. ETFs have not shown sustained accumulation, maintaining market weakness. The apparent demand for Bitcoin has declined by around 67,000 BTC over the past month, and spot ETF inflows remain below levels associated with bullish recoveries.
Additionally, exchange inflows have reached a 7-day average of approximately 39,000 BTC, the highest since November, suggesting increased sell-side pressure. This indicates that Bitcoin, despite some favorable conditions, remains in a bear cycle initiated less than two months ago.
Current Bitcoin Price Overview
As of now, Bitcoin is trading at approximately $95,200, with no significant changes in the past 24 hours.
Featured image from iStock, chart from TradingView