CryptoQuant Says Bitcoin Price Rebound Above $703k Is Relief Rally

TLDR

• CryptoQuant says Bitcoin remains in a bear market

• Bull Score Index stands at 10 out of 100

• Spot demand contraction narrowed from -136K to -25K BTC

• Long term holder selling dropped to 276K BTC

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Bitcoin price has climbed above $73,000 earlier Thursday, drawing renewed attention from traders. Yet CryptoQuant said the move likely reflects easing selling pressure rather than a structural shift.

Julio Moreno, head of research at CryptoQuant, stated that the asset remains in a bear market. He said fundamental and technical indicators continue to signal a bearish environment.

“Bitcoin is still inside a bear market, despite the recent price rally,” Moreno wrote in a report. He added that the rally is best interpreted as a relief bounce within an ongoing downturn.

Selling Pressure Eases as Spot Demand Improves

CryptoQuant data shows that apparent spot demand contraction has narrowed. The metric improved from around negative 136,000 BTC at the start of 2026 to about negative 25,000 BTC. This shift suggests that selling pressure has eased since early February. Reduced supply entering the market has supported the recent price move.

Demand from U.S. investors has also strengthened. The Coinbase premium index moved from deeply negative levels in early February to its most positive reading since October.

This change indicates that buying activity from U.S.-based traders has increased. Spot demand has shifted from contraction toward modest growth.

Long Term Holders Reduce Selling Activity

Selling by traders and long-term holders has also declined. Moreno noted that unrealized losses among traders reached levels last seen in July 2022. Historically, large unrealized losses tend to reduce marginal selling. Traders are often less willing to exit positions when losses are already substantial.

Long-term holder selling has slowed sharply in recent months. The 30-day selling pace dropped from about 904,000 BTC in late November to roughly 276,000 BTC.

This marks the lowest level of long-term holder selling since June 2025. Lower distribution from these wallets has contributed to price stabilization.

Despite these changes, CryptoQuant’s Bitcoin Bull Score Index remains low. The index stands at 10 out of 100, indicating limited confirmation of a new bullish phase.

Resistance Levels and Broader Market Context

Moreno said that if Bitcoin continues higher, resistance could appear near $79,000. This level aligns with the lower band of traders’ onchain realized price.

Historically, this band has acted as resistance during bear markets. A broader resistance level may emerge near $90,000. That level corresponds to the overall traders’ realized price. Earlier this year, the band capped a rally between $80,000 and $98,000.

Source: X

At the time of writing, Bitcoin trades near $71,160. The asset is down about 3% over the past 24 hours, according to market data. Onchain metrics from Santiment show that non-empty Bitcoin wallets reached 58.45 million. Meanwhile, exchange wallet balances have fallen to their lowest level since December 2017.

CryptoQuant maintains that the current rebound fits within a broader bearish regime. The firm said macro and onchain indicators still point to a market in recovery rather than expansion.

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