Bitcoin (BTC) Entering Bear Market Phase? On-Chain Data and Key Price Levels in the Spotlight

Jakarta, Pintu News – The crypto market is on shaky ground again after Bitcoin (BTC) plummeted to a four-month low, signaling the potential start of a new bear market phase.

The sharp drop to Rp1.65 billion (approximately $98,900) sparked concerns that the market structure was entering a macro downtrend, reinforced by on-chain data showing weakening bullish leverage and rising stablecoin dominance.

This article will discuss the latest bearish signals, risk indicators that are changing direction, as well as critical price levels that crypto investors should watch in the next few weeks.

On-Chain Signals Show Bitcoin Entering Downtrend

On-chain data from Swissblock reveals that selling pressure has intensified in recent days. They note that Bitcoin’s “risk-off” indicator is starting to approach high-risk territory, a condition that in previous cycles signaled the start of a bear market. If this indicator continues to move up, the market could shift from a short-term correction to a deeper structural decline.

Glassnode also pointed out the decline in bullish leverage interest in the derivatives market. Monthly funding paid out by long positions in Bitcoin perpetual contracts dropped dramatically by around 62%, from IDR5.64 trillion ($338 million) to IDR2.12 trillion ($127 million). This decline suggests that traders are increasingly reluctant to maintain long exposure under current market conditions, indicating a weakening of bullish speculation and a strengthening of the bearish bias in the cryptocurrency market.

Read also: ASTER Surges Amid Sluggish Crypto Market, Up 5% in a Day!

USDT Dominance Rises, a Sign of Rising Risks in the Crypto Market

Mikybull Crypto analysts confirmed a potential bear market by showing a breakout of the inverse head-and-shoulders pattern on the USDT dominance chart. The rise in dominance of stablecoins like USDT usually signals increased market interest in exiting risky assets like cryptocurrencies and waiting for more stable conditions. In previous cycles, a similar pattern appeared just before the market entered a prolonged bear season.

The rise in USDT dominance means investor capital is flowing out of Bitcoin and alts, amplifying selling pressure. With liquidity moving into stablecoins, risk sentiment is deteriorating and crypto asset prices are vulnerable to further declines. If this trend continues, selling pressure could intensify as investors choose to hold capital in stablecoins until volatility subsides.

Also read: XRP ETF Set to Launch Next Week, Canary Capital CEO Announces on Ripple Swell!

Bitcoin Price Levels that Investors Must Monitor

In the latest downturn, Bitcoin (BTC) price fell about 20% from its ATH peak of IDR2.11 billion ($126,000). BTC has also crossed the short-term cost basis holder at around Rp1.88 billion ($113,000), a historical signal that often appears before a medium-term bearish phase. This suggests that many new buyers are at a loss and could potentially capitulate.

Glassnode mentions that the next support is at the 75% quantile base cost at around Rp1.65 billion ($99,000). This level has historically been a bounce zone in deep corrections.

Meanwhile, analyst Daan Crypto Trades highlighted that if Bitcoin breaks Rp1.64 billion ($98,000), the market could trigger a huge wave of liquidation. This liquidation could push the price down to the Rp1.59 billion ($95,000) area which is the next liquidity cluster.

On the upside, there is strong resistance at Rp1.71 billion-Rp1.75 billion ($103,000-$105,000), where ask orders are starting to pile up. To restore the bullish structure, Bitcoin needs to break back out of the area and hold above it, something that seems difficult given the selling pressure from long-term holders and the deteriorating market sentiment.

Conclusion

With a combination of weakening on-chain signals, increasing stablecoin dominance, and critical price levels being tested, the market is showing strong signs that Bitcoin (BTC) is moving towards a new bear market phase. Crypto investors should be wary of moves below US$1.64 billion and monitor risk indicators that could dictate market direction in the medium term.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Cointelegraph. Bitcoin ‘bear market’ confirmed: Watch these BTC price levels next. Accessed November 6, 2025
• Featured Image: Generated by AI