CryptoQuant’s Bitcoin Bull Score Index has dropped to a value of 20, hinting that a potential bearish transition could have occurred for the asset.
Below is a chart that shows the trend in the indicator over the past year.
As is visible in the graph, Bitcoin entered into the “bullish cooldown” phase at the start of August. This signal interestingly persisted even when its price set a new all-time high (ATH) later in the month, a potential sign that the breakout was always gonna be short-lived.
In the market downturn that has followed this peak, the Bull Score Index first dipped into the “getting bearish” zone, and now, it has plunged right into “extra bearish” levels. “This is something to take serious,” notes Maartunn.
Here is another chart, this one breaking down the individual signals contributing to the Bull Score Index’s value:
Last time the MVRV Z-Score and Bull Score Index turned bearish was back in February of this year. What followed the signal was an extended phase of negative price action for Bitcoin. Given that the Bull Score Index is once again giving an extra bearish indication for the cryptocurrency, it remains to be seen whether its price will now see another transition.
While on-chain metrics may be pointing at a bearish conclusion for Bitcoin, its price has made a recovery to $113,000 for now.
