Bitcoin (BTC) is entering a critical phase that is raising alarms among market analysts, as fresh data from market analytics firm Material Indicators suggests that the current weekly candle structure strongly resembles the dangerous fractal seen at the end of 2021 — just before the market plunged into the infamous 2022 crypto winter.
The latest price formation, marked by increasingly narrow ranges and repeated breakdowns of major support zones, indicates that the coming weeks could determine Bitcoin’s next major macro trend. If the current setup continues to unfold, analysts warn that BTC may be at risk of sliding into another prolonged bearish phase.
🔥 A Fractal That Haunted the Market Once Before
In its latest research, Material Indicators highlighted that Bitcoin’s current weekly chart mirrors the structural behavior seen before the 2022 collapse:
📌 BTC is trading tightly between the 100-week and 50-week Simple Moving Averages (SMA), just like during the final accumulation window in its previous cycle.
📌 However, unlike 2021, momentum is noticeably weaker — Bitcoin has already lost the 50-week SMA as support, and the weekly RSI has fallen below the key threshold of 41, signaling sustained weakness in buying pressure.
According to analysts:
“Bitcoin is behaving very similarly to one phase of the previous cycle, and we are nearing the point where the trend was confirmed last time.”
A major risk now lies in the looming weekly “death cross”, where the 21-week SMA is projected to cross below the 50-week SMA within approximately two weeks. Historically, this crossover has served as confirmation of long-term bearish continuation — not a bottom-forming signal.
The market’s make-or-break moment will depend on whether Bitcoin can reclaim the 50-week SMA and hold it as support. Failure to do so would dramatically increase the probability of a deeper decline — potentially forming the first major phase of a new crypto winter.
Adding further resistance, sell-side order books show dense liquidity stacked near the $100,000 level, representing a heavy barrier for any bullish recovery attempt.
Material Indicators concludes:
“The next two to three weeks will be decisive. Either Bitcoin recovers convincingly and reclaims key levels, or the macro trend may shift decisively toward a bearish outcome.”
💸 Capital Flows Tell a Split Market Story
As of December 30, Bitcoin is trading near $87,400, dropping nearly 3% in the past 24 hours, now sitting more than 30% below its all-time high at $126,000.
Although BTC briefly retested $90,000, many analysts questioned the sustainability of that bounce. Analyst Ali Martinez classified the move as a “dead-cat bounce”, noting that net capital outflow across crypto exceeded -$4.5 billion, signaling that:
👉 Liquidity is leaving the market — not entering it.
ETF data reinforces the bearish picture:
Spot Bitcoin ETFs continue to record multi-month outflows, evaporating billions in assets under management.
But not every corner of the crypto market is bleeding. Certain assets are quietly becoming capital magnets:
Asset Category
Recent Flow Trend
XRP-related investment products
+ $1.14B inflow
Solana-linked funds
+ $1.34B inflow
This distribution shows a major rotation of capital — not an exit from crypto entirely. Investors aren't abandoning digital assets — they are reallocating to ecosystems where they see higher utility, growth potential, and clear catalysts.
🧊 Is a New Crypto Winter Inevitable?
While bearish signals dominate the technical landscape, the long-term macro environment still includes potential bullish triggers:
✔ Institutional participation remains historically high
✔ Regulatory frameworks are advancing
✔ Halving-cycle macro drivers remain in place
The market now stands at a knife-edge moment. Whether Bitcoin survives this fractal or repeats history will depend on:
reclaiming major moving averages
restoring inflow dominance
and overcoming sell-side liquidity walls
The next 2–3 weeks could define an entire year of crypto direction.
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