In its latest analysis, crypto asset research company Matrixport highlighted one of the key indicators used to determine whether Bitcoin has entered a bear market.
According to the company, a common observation in market cycles is that larger price drops occurring more frequently within 30 days could be a harbinger of a bear market.
Matrixport highlighted that it is relatively rare for Bitcoin to lose more than 20% of its value in 30 days during bull markets. However, it noted that such sharp declines tend to occur repeatedly during bear markets. Therefore, the frequency of large short-term pullbacks can help understand whether the market is structurally weak or not.
The report also stated that market momentum actually began to weaken from mid-2025 onwards. Based on 30-day rate of change data, Matrixport reported that the peaks seen in upward movements were forming at increasingly lower levels, and consequently, the driving force on the buying side was also decreasing.
The company noted that experienced crypto investors know that bear markets are a natural and recurring part of the cycle, often paving the way for the next recovery and uptrend. However, Matrixport reminded that bear markets are not usually a one-way decline, and strong interim rallies can be seen even within a major downtrend.
The analysis advised investors to remain disciplined and to pursue opportunities that offer a more favorable risk-return ratio as market conditions change.
*This is not investment advice.
