Bitcoin’s recent price movements have raised concerns as indicators suggest a predominantly bearish market for the leading cryptocurrency, despite a slight recovery on Friday that saw prices rise to $116,000, according to the blockchain analytics platform CryptoQuant. Currently, eight out of ten indicators in CryptoQuant’s Bull Score Index are signaling bearish trends for Bitcoin, prompting analysts to comment on the slowing momentum in the market.
The Bull Score Index comprises ten vital indicators, of which only two—“Bitcoin demand growth” and “Technical signal”—remain firmly in the bullish territory. The demand growth metric has been in positive territory since July, showcasing increasing market interest in Bitcoin. Meanwhile, the technical signal tracks key technical analysis indicators. However, the remaining indicators—including the MVRV-Z score, profit and loss index, and bull bear cycle indicator—are all displaying bearish signals.
The MVRV-Z score evaluates Bitcoin’s market value in relation to its realized value, while the profit and loss index assesses the profitability of Bitcoin’s supply. Other metrics like the cycle indicators reflect current market sentiment, and the exchange flow pulse indicates the movement of Bitcoin between various exchanges. This bearish trend mirrors similar indicators observed in April when Bitcoin’s price plummeted to $75,000. In contrast, during July, when Bitcoin experienced its first peak of the year at $122,800, eight out of ten indicators were in the green.
This month, CryptoQuant’s overall Bull Score Index has fluctuated between 20 and 30, indicative of ongoing market corrections. Meanwhile, the CoinGlass Crypto Bitcoin Bull Run Index (CBBI), which examines nine metrics to evaluate the current state of the bull market, is currently showing a score of 74, suggesting that the market is nearing three-quarters of the way through what could be a bull cycle. Yet, of the 30 peak indicators tracked by CoinGlass, only the altcoin season index has turned bullish.
In a broader context, Bitcoin’s performance has been relatively lackluster, especially when compared to altcoins, equities, and gold. Augustine Fan from SignalPlus highlights that net buying momentum for digital assets has diminished, with centralized exchanges experiencing reduced activity in terms of new capital inflows. As a result, investors seem to be favoring equities over cryptocurrencies for the time being. Fan suggests a more defensive investment approach given the tough seasonal conditions impacting risk assets.
On a more optimistic note, some market watchers attribute the current market dynamics to an anticipated correction leading into September, suggesting the possibility of an extended bull market. Crypto podcaster Tony Edward noted a recovery in global liquidity, implying that this bull market cycle could stretch longer, possibly culminating in a local peak in Q4 and an even more significant finale in Q1 2026.
Bitcoin’s price movement on Friday was notable, marking the first time in three weeks that the cryptocurrency exceeded $116,000 after a 1.5% daily gain. This puts Bitcoin just 6.8% away from its all-time high, and the ongoing correction appears to be less severe than in previous cycles, offering a sliver of hope to traders and investors watching the market closely.
