The Bitcoin Bull Score Index has fallen to a value of 20, indicating a potential shift towards bearish territory for the cryptocurrency. This information was shared by CryptoQuant community analyst Maartunn on X, highlighting the significance of the Bull Score Index in determining market phases based on key on-chain metrics.
The chart depicting the trend of the Bull Score Index over the past year shows a transition from a bullish cooldown phase to a more bearish outlook, particularly after Bitcoin’s recent price drawdown. Despite reaching a new all-time high in August, the indicator remained in the bearish territory, suggesting a short-lived breakout.
In the current market downturn, the Bull Score Index has dropped further into “extra bearish” levels, prompting caution from analysts. A breakdown of individual signals contributing to the index reveals a bearish sentiment across various metrics, with the Market Value to Realized Value (MVRV) Z-Score turning red, indicating investor profitability concerns.
Analyst Ali Martinez has also highlighted another bearish signal in the form of the net position change of the 90-day exponential moving average Bitcoin Supply In Profit. This metric, which has recently turned negative, aligns with previous bearish market phases and adds to the caution surrounding Bitcoin’s future price action.
Despite the on-chain metrics pointing towards a bearish outlook, Bitcoin has managed to recover to $113,000. The price chart reflects this recovery, showcasing the cryptocurrency’s resilience amidst the current market conditions.
As investors navigate the uncertainties surrounding Bitcoin’s price trajectory, monitoring on-chain metrics and key indicators like the Bull Score Index will be crucial in assessing potential market shifts and making informed decisions in the volatile cryptocurrency space.