CryptoQuant’s Bitcoin Bull Score Index rose to 30, indicating bearish conditions for the asset remain, but are no longer extreme.
The Bitcoin Bull Score Index saw a small uptick
In a new post on X, CryptoQuant head of research Julio Moreno talked about the recent Bull Score Index trend for Bitcoin. This indicator basically tells us about the market stage in which the cryptocurrency is currently. The metric determines this by referring to data from ten indicators covering different aspects of the network. Some of the main indicators of the chain are part of the MVRZ Z-Score index, Price realized and CryptoQuant P&L Index.
The value of the Bull Score Index corresponds to the number of these indicators that are currently giving a bullish signal for BTC. For example, a value of 60 means that six indicators give a green light.
Now, here’s a chart Moreno shared that shows how the Bitcoin Bull Score Index has changed over the past few months:
As shown in the chart above, the Bitcoin Bull Score Index previously fell to zero, which means that all ten indicators have fallen on the digital asset. Red signals appeared in the gauges after the decline in asset values.
Recently, the Bull Score Index has seen a slight recovery, which means an improvement in the chain’s performance. The increase was not so great, but it takes the metric to a value of 30, which corresponds to only three indicators that give bullish signals. “The bull flags that lit up were: exchange flows, steady liquidity growth and price momentum,” the analyst explained.
However, the jump was enough to lift the Bull Score Index out of the “excessive damage” zone, which corresponds to values of 20 and below. A normal bearish zone has its stop at 40, so at least two other indicators must turn green for the indicator to escape from it as well.
Whether the current recovery in the Bull Score Index actually leads to an escape from bear territory may depend on whether the market’s recovery is part of a broader reversal. The head of CryptoQuant does not think so, noting that “We are still in a bear market, but in a relief rally.”
In some other news, bitcoin sellers have recently seen losses on the network, as blockchain analytics firm Glassnode noted in an X post.
As can be seen from the chart, the 90-day moving average (MA) of Bitcoin’s profit/loss ratio is now below 1, meaning that losses are greater than gains. “Historically, breaks from the neutral (~1) level have persisted for 6+ months before recovering,” Glassnode said.
BTC price
Bitcoin has already bounced back above the $70,000 level after falling below $66,000 over the weekend.
