According to ChainCatcher, as of December 22nd, Bitcoin was still fluctuating in the $88,000–$90,000 range. However, many technical indicators and market structures are suggesting increased downside risk, and the market may be entering a correction phase at the end of its cycle.
The five warning signals include:
1️⃣ Demand growth slows down:
Actual buying demand is weakening, while price strength is primarily driven by leverage rather than spot buying.
2️⃣ ETF inflows are declining:
Capital into spot Bitcoin ETFs in the US declined sharply in the fourth quarter of 2025.
3️⃣ The Medium investor reduced their holdings:
Wallets holding between 100 and 1,000 BTC recorded a larger decrease in holdings compared to the same period last year.
4️⃣ Funding rate gradually decreases:
Funding rates on major exchanges are trending downwards, indicating weakening demand for leverage.
5️⃣ Price breaks above the 365-day moving Medium :
Bitcoin has fallen below its 365-day moving Medium – the first time it has remained below this long-term trend indicator since early 2022.
Historical data suggests that if a bear market truly forms, the price level around $56,000 could become a long-term support point for Bitcoin.
