CryptoQuant: The market has entered a structural adjustment phase, and the possibility of continued decline remains high.
CryptoQuant analyst @AxelAdlerJr, combining Bitcoin on-chain signal indicators, stated that the current market has entered a deep adjustment phase, which lasted for a year in the previous cycle. The current maximum drawdown of Bitcoin from its historical high is -32%, positioned in the middle area between a deep correction and a market bottom. If macroeconomic and on-chain signals do not improve, there is still a risk of continued market decline.
In summary, the current signal combination indicates that the market has entered a structural adjustment phase: the profit and loss score corresponds to the bear market area historically, while the -32% drawdown has exceeded typical cyclical adjustments. As long as on-chain and macro indicators show no signs of improvement, the possibility of continued decline remains high, recovery will take time, and it requires a shift in the internal sentiment of the network's profit and loss structure.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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