“The Bull Score Index, A Measure of Bitcoin’s Market Health, Is Currently at A Low 20, Indicating A Possible Structural Shift in Market Dynamics.”, – WRITE: www.coindesk.com
Bitcoin Was Trading AROUND $ 84,000 as Europe Morning Hours on Friday, A 23% Drop From Its January Peak of $ 109,000. The Fall Has Rattled Investors and Fueled Debate Over Whather This Marks The Start of A New Bear Market or A Fleeting Correction Within a Broader Bullish Trend.
Such PullBacks Are Not Uncommon – BTC HAS WATHERED SIMILAR DECLINES IN PAST BULL CYCLES, OFFEN REBOUNDING TO NEW HEIGHTS. Yet, on -chain Analysis Firm Cryptoquant’s Bull Score Index, A composite Metric Designed to Gaugein Bitcoin’s Market Health, Shows Sigins of Deeper Weakness.
The Index Evaluates Ten Critical Indicators – Spanning Network Activity (Like Transaction Volume), Investor Proficiency, Market Liquidity, Among Other Factors, Assigning A SCORMING A SCORM. Robust, Bullish Environment, While Lower Readings Flag Bearish Conditions.
As of Now, The Bull Score Index Sits at A Troubling 20-The Lowest Since January 2023, WHEN BITCOIN SAT AOUND $ 16,000 Post The Collapse of Ten-Biemoth Crypto Exchange Ftx.
Eight of the ten Metrics Tracked by the Index Show Warning Signs, With Network Activity Been Bearish Since December 2024 and Dried Up Transaction Volumes and Liquingity.
“Historically, Bitcoin have only sustaned Majoor Price Rallies WHEN The Bull Score Is Above 60, While Prolonged Readings Below 40 Have Aligrated with Bear Markets Report.
INVESTOR PROFITITY HAS WANED AS SHORT-TRIM HOLDERS FACE UNREAALIZED LESSES, While Demand Softens-US SPOT BITCOIN ETFS, ONCE AGGRESSIVE BUYERS, HAVE REGISTED A NET $ 180 Among the Highest Rates of Withdrawals Since they Started Trading at the Beginning of 2024.
In previos cycles, readings bevel 40 for weeks or months have preceded Extended Bear Phases, Like The 2022 Slump that Saw Bitcoin Sad Over 60% of ITS VALUE FROM PEAK.
The coming weeks will be pivotal. EITHER The INDEX REBOUNDS, Signaling Renewed Strength, or Entrenches Below 40, Cementing A Bearish Shift That Could Could Test Bitcoin’s $ 80,000 Support Zone – One Flagged by Analyst.
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