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The price of Bitcoin surprised the crypto community when it broke the resistance level around $94,000 last week. This has raised questions as as to if this was simply a mere bear market rally or whether the bull market is back on the right track. Here's what CryptoQuant, which previously declared a bear market, has to say concerning the recent Bitcoin price rally.
Despite improving conditions, BTC continues to be in a bear market: CryptoQuant
On Friday, January 16, blockchain analytics firm CryptoQuant revealed in its latest report that Bitcoin demand conditions have gotten less negative following the recent rally above $97,000. This on-chain commentary got here a couple of weeks after the corporate said that the apparent demand for BTC on the time indicated the beginning of a bear market.
The bear market confirmation got here after Bitcoin's price fell below the 365-day moving average – a level that has defined bull and bear phases previously. However, the leading cryptocurrency has been on an upward trend since breaking below this level and is up around 21% for the reason that end of November 2025.
Source: CryptoQuant
In its research report, CryptoQuant noted that although the worth of BTX is approaching the 365-day moving average, it has not yet regained the technical level, which is currently around $101,000. The further mentioned evaluation firm acts as a “regime boundary” during bear markets – as has been the case in past cycles – triggering price rejections before renewed downward movements.
In addition to the technical hurdles, CryptoQuant noted that while Bitcoin demand conditions have “marginally” improved, they still indicate market weakness. “US spot indicators resembling Coinbase Premium briefly turned positive, while US ETFs merely paused net selling after dumping around 54,000 BTC in November relatively than showing sustained accumulation,” the corporate added.
CryptoQuant also highlighted that on-chain spot demand continues to say no, with apparent demand declining by roughly 67,000 BTC over the past 30 days. Meanwhile, inflows into Bitcoin spot exchange-traded funds remained largely below the degrees that always accompany sustained bullish market rallies.
At the identical time, rising BTC exchange inflows don’t encourage optimism but relatively increase downside risk. Data from CryptoQuant shows that remittances to centralized exchanges rose to a 7-day average of about 39,000 BTC, the very best level since late November. According to the corporate, this can be a telltale sign that sell-side pressure is increasing following recovery rallies.
With this in mind, while market conditions look like improving somewhat favorably for the worth, Bitcoin continues to be within the bear cycle that began lower than two months ago.
Bitcoin price at a look
As of this writing, the worth of BTC is around $95,200, reflecting no significant movements within the last 24 hours.
The price of BTC within the every day timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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