TechFlow, Dec 5 — CryptoQuant analyst Axel Adler Jr. analyzed that Bitcoin has pulled back to the $92,000 level, with the current cycle's maximum drawdown reaching -32%.
On-chain indicators show bearish signals: The Profit/Loss (P/L) Score has remained in the -3 range since November 6, consistent with bear market phases observed in previous cycles. With the current price at $92,000 and this metric dropping to the -3 mark, the market has entered a phase of deep correction.
Historically, mild corrections in the previous cycle typically ranged between -20% and -25%, while deep drawdowns of -50% and -70% marked capitulation phases. The current peak drawdown of -32% sits in the intermediate zone between deep correction and potential market bottom.
The analysis suggests that as long as on-chain and macro indicators do not show signs of improvement, the probability of continued downside remains high.
