CryptoQuant Says Bitcoin Bull Score at 2-Year Low of 20: Heres What It Means for Prices
Insights from on-chain analytical provider CryptoQuant highlight a 2-year Bitcoin Bull Score low, raising concerns over the cycles continuity.After a meteoric surge to $87,482 yesterday amid bullish macroeconomic factors, Bitcoin has tilted downwards again. The premier crypto asset surged 6% between Wednesday and early Thursday but has corrected 4% from the price high as the market cools from the FOMC meeting enthusiasm.Meanwhile, at the current market price, Bitcoin is 23% away from its January 20 all-time high of $109,312 and has shown intense price weakness recently. A Thursday commentary from CryptoQuant elaborates on what this means for the largest cryptocurrency by market cap and the crypto bull market.Is the Bull Market Over?The market analytical provider highlighted that while corrections of this nature occur during bull cycles, this seasons steep decline comes with other bearish indicators. Notably, the firm had earlier fronted this claim, citing the Bull-Bear Market Cycle (BBMC) indicator and the Market Value to Realized Value (MVRV) ratio.This time, CryptoQuant analyzed the Bitcoin market using the Bull Score Index, a metric that tracks the potency of a cycle using scores ranging from 0 to 100. The parameter combines ten key market indicators, including network activity, investor profitability, liquidity, and demand, with higher scores signaling a bullish market environment.Notably, Bitcoins currency Bull Score Index stands at 20, the lowest since January 2023. Such an underwhelming score indicates weak market conditions, suggesting the recent downside might actually be a bearish trend rather than a near-term correction.Bitcoin Below Bullish ThresholdThe analysis highlighted that historically, the average score for a strong bullish market continuation is 60. An accompanying chart showing Bitcoins price action in relationship with the index indicates that the pioneering cryptocurrency only has sustained price uptrends when the score is above 60.
Text source: The Crypto Basic
