Despite Bitcoin surging past the $116,000 mark this week, its bull market indicators are signaling a shift towards bearish territory. CryptoQuant highlights that eight out of ten of their Bull Score Index indicators point towards a bearish trend. This downturn coincides with a general cooling in Bitcoin’s momentum.
Analysts attribute this change to several factors, including the slowing growth of demand for Bitcoin and declining interest among institutional investors. Notably, while ‘Bitcoin demand growth’ and ‘Technical signal’ remain bullish, the rest of the indicators — such as MVRV-Z score, profit and loss index, bull bear cycle indicator, inter exchange flow pulse, network activity index, stablecoin liquidity, trader onchain profit margin, and trader realized price — are all pointing towards a bearish trend. The recent downturn in Bitcoin market performance is being compared to the last notable correction in April when prices dropped significantly.
While the overall Bull Score Index has remained relatively consistent at around 20-30 throughout the month, other indicators like CoinGlass’s Crypto Bitcoin Bull Run Index (CBBI) suggest that we are currently in the early stages of a bull market. However, only the Altcoin Season index is flashing a bullish signal.
Despite this recent correction, some analysts believe that a new bull run might be imminent. Their reasoning is based on increased global liquidity and a potential for extended bull market activity in Q4 2023 followed by a significant top in Q1 2024. Bitcoin’s resurgence briefly climbed past $116,000 this week, but it remains some distance away from its all-time high.