The leading cryptocurrency, Bitcoin (BTC), along with various altcoins, has experienced an upward trend recently. Today, BTC saw a modest rebound to $116,000. Nevertheless, despite this increase, the indicators for a bullish market predominantly suggest a bearish outlook.
In his recent analysis, CryptoQuant analyst Maartun noted that eight out of ten indicators on the CryptoQuant Bull Score Index are currently showing negative signals, indicating a pessimistic forecast for Bitcoin.
The Bull Score Index is composed of ten distinct indicators; however, only two are currently trending upwards: “Demand Growth for Bitcoin” and “Technical Signal.”
Conversely, the other eight metrics—including MVRV-Z score, profit and loss index, bull-bear cycle indicator, inter-exchange flow pulse rate, network activity index, stablecoin liquidity levels, trader on-chain margin data and realized price—are all displaying negative trends.
The analyst remarked that “momentum is evidently diminishing.”
Back in April when eight of these Bull Score Index indicators were declining simultaneously; Bitcoin’s value plummeted to around $76K at the beginning of that month.
In contrast to this situation in July when BTC hit its first peak of the year at $122.8K—during which time eight out of ten indicators were positive.
However some analysts have associated current conditions with historical corrections typically seen in September and have suggested that an extended bullish market phase may follow.
*This does not constitute investment advice.