Bitcoin On-Chain Heatmap Shows All Major Metrics In The Red

Overview

Recent analysis of Bitcoin’s on-chain metrics indicates a bearish outlook for the leading cryptocurrency. A prominent heatmap shared by CryptoQuant reveals that all major on-chain indicators are currently signaling unfavorable conditions for Bitcoin, which could hinder its potential for growth in the near future.

Major On-Chain Indicators in Red

In a post on X, analyst Darkfrost from CryptoQuant discussed the current state of Bitcoin’s on-chain indicators. The heatmap he shared illustrates that 10 key metrics related to Bitcoin are all flashing red signals. These metrics encompass various aspects of the Bitcoin network, each providing insights into the health and dynamics of the market.

One of the notable indicators is the MVRV Z-Score, which assesses general investor profitability. Additionally, the Trader Realized Price and Trader On-chain Profit Margin focus specifically on the profit-loss status of short-term holders. The collective red signals from these indicators imply that the market is not conducive to a bullish trend. Darkfrost remarked that maintaining these bearish conditions makes it challenging to envision Bitcoin reaching new highs soon.

The emergence of red indicators on the heatmap aligns with the recent bearish price action experienced by Bitcoin. Interestingly, some metrics have displayed bearish tendencies even before the recent market downturn. Specifically, the Inter-Exchange Flow Pulse and the CryptoQuant Network Activity Index have been in the red for an extended period. The Inter-Exchange Flow Pulse tracks the movement of Bitcoin between spot and derivatives exchanges, and its bearish status suggests a lack of speculative momentum in the market. This metric turned red during a drawdown phase in the first half of 2025 and has remained bearish since then.

Similarly, the CryptoQuant Network Activity Index, which measures transaction activity on the Bitcoin blockchain, exited the bullish territory in late 2024. Since then, the network’s activity has predominantly lingered at bearish levels, with only a few short-lived spikes. Most other metrics transitioned to red only following the price decline in November 2025. Notably, the last indicator to shift to red was the Trader On-Chain Profit Margin, which had shown green during a recovery rally in January but turned bearish after the latest price drop.

Short-Term Holder Behavior

In addition to the concerning metrics, there are signs that Bitcoin’s short-term holders are taking losses. Community analyst Maartunn from CryptoQuant noted that this group, which consists of investors who acquired Bitcoin within the last 155 days, has increased their loss deposits to exchanges. Typically, such deposits indicate a desire to sell, suggesting that some short-term holders are capitulating under current market conditions.

From Author

The current bearish signals across multiple on-chain metrics highlight significant challenges for Bitcoin. The combination of declining network activity and the behavior of short-term holders suggests that the market sentiment is leaning towards cautiousness. As these indicators continue to flash red, it raises questions about the potential for recovery and the overall health of the Bitcoin market.

Impact on the Crypto Market

• All major on-chain indicators for Bitcoin are currently showing bearish signals, indicating unfavorable market conditions.
• The prolonged bearish status of the Inter-Exchange Flow Pulse suggests a lack of speculative interest among investors.
• Decreased transaction activity on the Bitcoin blockchain, as indicated by the CryptoQuant Network Activity Index, reflects a diminishing engagement from users.
• The behavior of short-term holders, who are increasingly taking losses, could further exacerbate selling pressure in the market.
• The overall sentiment appears to be negative, impacting investor confidence and potentially hindering future price recovery.