CryptoQuant: The Market Has Entered a Phase of Structural Adjustment, Continued Downtrend Still Highly Likely
BlockBeats News, December 5th, CryptoQuant analyst @AxelAdlerJr combined Bitcoin on-chain signal indicators' analysis and stated that the current market has entered a deep adjustment phase, which lasted for one year in the previous cycle. The current Bitcoin's largest drawdown from its all-time high is -32%, in the intermediate zone between a deep pullback and market bottoming, there is still a risk of continued decline if the macroeconomy and on-chain signals do not improve.
In summary, the current signal combination indicates that the market has entered a structural adjustment phase: the NUPL corresponds to bear market territory in history, and the -32% drawdown has exceeded the typical periodic correction. As long as there are no signs of improvement in on-chain and macro indicators, the possibility of continued decline remains high, recovery takes time, and a shift in the network's sentiment within the profit-loss structure is needed.
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