Five major indicators suggest that Bitcoin may enter a bear market by early 2026

According to Beincrypto, as of December 22, Bitcoin has remained in the range of $88,000 to $90,000, but multiple on-chain market structure indicators show that downside risks are increasing, and the market may be entering the distribution phase at the end of the cycle.

Five major warning signs:

1. Slowing demand growth: Apparent demand growth is slowing, with price strength mainly relying on leverage rather than spot buying.
2. Weakened ETF inflows: Inflows into U.S. spot Bitcoin ETFs have significantly slowed down since Q4 2025.
3. Medium-sized investors reducing positions: The holdings of wallets containing 100 to 1,000 BTC have seen an increased year-over-year decline.
4. Decreasing funding rates: Funding rates across major exchanges are trending downward, indicating weakened leverage demand.
5. Falling below the 365-day moving average: This is the first sustained drop below this long-term trend indicator since early 2022.

Historical data shows that if a bear market takes shape, a Bitcoin price of around $56,000 may become a long-term support range.