Key Takeaways Ki Young Ju, CryptoQuant’s CEO, forecasts Bitcoin’s bearish phase could extend through the first quarter of 2027 Analysis relies on the CryptoQuant PnL Index Signal, utilizing a
Ki Young Ju, the chief executive of blockchain analytics platform CryptoQuant, has projected that Bitcoin’s ongoing bearish period may persist until the beginning of 2027. Ju shared his analysis on X, supporting his prediction with findings from CryptoQuant’s proprietary PnL Index Signal.
“Historical data shows that when profit realization begins cascading, Bitcoin holder profitability typically declines for approximately 18 months,” Ju explained. “Given that this trend reversal commenced in October 2025, we could be looking at bearish conditions extending to early 2027.”
Once profit-taking cascades, Bitcoin investors' PnL typically falls for about 18 months.
Since the trend turned in Oct 2025, the bear market could last until early 2027.
The trend only changes when unrealized profits rise and realized profits fall. We're not there yet. pic.twitter.com/fQyIRLu8vv
— Ki Young Ju (@ki_young_ju) May 29, 2026
The PnL Index Signal operates as a 365-day moving average designed to monitor cyclical patterns in investor profitability. This metric reached its zenith in late 2025, displaying striking similarities to patterns observed before the extended bear markets that characterized 2014, 2018, and 2022.
Those prior cycles all experienced significant, prolonged downturns following peak signals. According to Ju, the present cycle mirrors those historical precedents.
Ju identifies two concurrent conditions necessary for trend reversal. Unrealized profit levels must climb while simultaneously, realized profit figures must decline. This combination would indicate diminishing sell-side pressure and emerging buyer dominance.
“A genuine trend reversal requires unrealized profits climbing alongside falling realized profits. Current data doesn’t support that scenario yet,” Ju noted.
Bitcoin was changing hands near the $73,000 level when Ju published his analysis. This represents approximately a 30% decline from the cryptocurrency’s 2025 peak values.
Aggregate open interest across derivatives markets contracted to approximately $55.26 billion. The crypto market experienced $223.9 million in forced liquidations during a 24-hour window, with long position closures exceeding $30 million.
Bitcoin’s total market capitalization also decreased to roughly $1.46 trillion. This valuation places it trailing major corporations including Nvidia, Apple, Alphabet, Microsoft, and Amazon, along with other significant assets and commodities. Gold maintains its position as the planet’s most valuable asset with a nearly $31 trillion valuation.
Broader economic factors are compounding market pressure. April’s US PCE inflation registered at 3.8% on an annual basis, increasing speculation about additional Federal Reserve interest rate increases. Geopolitical friction between the US and Iran has also destabilized global markets, creating headwinds for risk-oriented assets including cryptocurrencies.
Ju identified two primary demand catalysts essential for sustainable Bitcoin price recovery. First, renewed capital inflows into spot Bitcoin exchange-traded fund products. Second, heightened transaction volume from institutional over-the-counter trading desks. Both channels have experienced reduced activity in recent months.
Blockchain data indicates capital continues entering Bitcoin networks, yet price appreciation remains absent. Ju characterizes this disconnect between inflows and price performance as a quintessential bear market indicator.
Not every market analyst shares Ju’s timeline assessment. VanEck CEO Jan van Eck suggested earlier this year that Bitcoin might be establishing a cycle bottom, citing stabilization in options markets and decelerating sales from long-term holders. Coinbase’s April 2026 market analysis proposed that price support could materialize between May and June.
According to CoinGlass data, critical resistance levels for Bitcoin exist at $74,200 and $74,500, where substantial sell order concentrations are positioned.
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