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.
Bitcoin Bull Score Index Now Available “Extra Bearish”Territory
It’s a brand new world post on X, CryptoQuant community analyst Maartunn has shared how the analytics firm’s “Bull Score Index”Bitcoin has undergone a recent change in its price. Bull Score Index tells you what market phase the crypto is in. This is determined by looking at a number of important on-chain metrics.
The chart below shows the change in this indicator during the last year.
Bitcoin is now a part of the global currency market. “bullish cooldown”This phase began at the beginning of August. It is interesting to note that this signal persisted when the cryptocurrency’s price reached an all-time-high (ATH) in later months, which could indicate the break-out was only going to be temporary.
The Bull Score Index first fell into negative territory during the subsequent market decline that followed the peak. “getting bearish”Now, the zone has been plunged 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:
The graph shows that almost all indicators give a bearish indication at this time. The perhaps most popular metric is the “Market Value to Realized Value (MVRV) Z-Score,”It is important to note that investor profitability has a direct correlation with the profitability of investors. It appears that the market is in a bad state to cause it to become red.
In February, this year, the MVRV Z-Score and Bull Score Index shifted bearish. After the initial signal, Bitcoin entered a long-term negative phase. As the Bull Score Index once again gives an extra-bearish indication, we will have to wait and see if the Bitcoin price is going through another shift.
Replying to Maartunn’s post, analyst Ali Martinez The caution was shared by the company, and another indicator that might point towards a similar conclusion for Bitcoin.
Martinez cites the change in the position of the 90 day exponential moving average Bitcoin Supply In Profit. From the chart, it’s apparent that the metric has turned negative recently, which is something that also happened before the bearish market phase earlier in the year.
BTC price
Bitcoin’s price is currently at $113,000, despite on-chain metrics indicating a negative conclusion.
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Source: www.newsbtc.com
