Bearish Signs for Bitcoin in On-Chain Metrics

Recent on-chain indicators are indicating a concerning trend for Bitcoin, hinting at potential bearish market conditions for the leading cryptocurrency.

On-Chain Metrics Showing Red Flags

In a new update on X, Darkfrost from CryptoQuant discussed the implications of on-chain metrics for Bitcoin’s current situation. The analyst presented a heatmap illustrating signals from ten different indicators pertaining to cryptocurrencies, all showing troubling signs.

The metrics highlighted in the heatmap cover various network aspects. For instance, the MVRV Z-Score reflects investor profitability, while Trader Realized Price and Trader On-Chain Profitability focus specifically on the profit and loss status for short-term holders.

Currently, all indicators on the heatmap are flashing red, signaling an unfavorable environment for Bitcoin’s bullish trend. As Darkfrost noted, “As long as this situation continues, it is unlikely that BTC will reach new highs in the short term.”

The increasing red color on the heatmap correlates with a bearish price action for Bitcoin. Interestingly, some indicators have been displaying bearish signals even prior to the market’s downturn, such as the Inter-Exchange Flow Pulse and the CryptoQuant Network Activity Index.

The Inter-Exchange Flow Pulse monitors the flow of transactions between spot and derivatives trading. A bearish trend here indicates a lack of speculative pressure in the market. The chart shows that this pulse turned red during the market’s decline in early 2025 and has remained there since.

Conversely, the CryptoQuant Network Activity Index, which tracks transaction activities on the Bitcoin blockchain, fell out of bullish territory by late 2024. Since then, network activity has largely remained low, with occasional short spikes.

Most other indicators only began to turn red following the price drop in November 2025. The last to show a bearish signal was the traders’ on-chain profit margin, which indicated green during a brief recovery in January but recently shifted to bearish after the latest price decline.

In related developments, it appears that short-term Bitcoin holders are starting to experience losses, as noted by CryptoQuant analyst Maartunn in a post on X. This group includes investors who bought Bitcoin within the last 155 days.

A graph illustrates a recent increase in loss deposits from these holders to exchanges.

This trend may suggest that some short-term investors are capitulating, as typically, investors choose to transfer their coins to centralized exchanges when they intend to sell.

Current BTC Price

As of now, Bitcoin is trading at around $65,300, reflecting a decrease of more than 2% over the last week.