Analyst: Slowing BTC buying pressure mirrors late-stage bull runs

Crypto analyst Mignolet has diagnosed a clear slowdown in BTC buying pressure across market and on-chain data, noting that the trend resembles the latter stages of past bull markets. Mignolet stated that one of the key reasons for warning about downside risk since August was a divergence in the Binance futures market, where prices rose while buying volume consistently decreased. The analyst added that this pattern is very similar to the 2021 market cycle and shows no signs of improving. Concurrently, the number of active addresses has plummeted. Mignolet explained that this metric is linked to on-chain over-the-counter (OTC) activity, suggesting a general weakening of market participation and vitality. According to the analyst, while a significant reversal should have occurred at some point, what is actually being observed is a final distribution phase similar to the end of the 2021 bull run. This implies the market may have already passed its peak. Mignolet emphasized that the market will likely need some time to recover and noted that while it is too early to determine if the four-year cycle is broken, the question is not of immediate importance.