Bitcoin Sentiment Flatline: Bull Score Crashes To 0 – What This Means For The Market

Despite a bounce in the price of Bitcoin back to the $104,000 mark, bearish pressure still lingers heavily around the flagship crypto asset. BTC’s recent market turbulence and strong pullback have triggered a surprising shift in its market dynamics, as evidenced by a sharp decrease in the BTC Bull Score ￰0￱ Momentum Vanishes As Bitcoin Traders Step Back While Bitcoin’s price has showcased robust bearish and downward action, several key metrics that measure market performance are starting to flip into a negative ￰1￱ most recent metric that has turned negative is the Bitcoin Bull Score Index , which may imply that market optimism is seeing a hard ￰2￱ a quick-take post on the CryptoQuant platform, a market expert and author with the nickname IT Tech, disclosed that the Bitcoin bull score index has fallen to level ￰3￱ Bull Score Index is a crucial metric that monitors investor momentum, accumulation strength, and confidence across significant cohorts, and a decline to 0 is uncommon for the ￰4￱ is worth noting that the last time the index dropped to this level was in January 2020.

A drop to this level often signals that all short-term mood indicators have completely lost their bullish ￰5￱ it does not necessarily prove a complete trend reversal, the level indicates that enthusiasm has cooled down to its lowest possible ￰6￱ though the metric has fallen to level 0, the expert highlighted that the market is not in an early-bear capitulation like ￰7￱ BTC’s price remaining in the six-figure range, this reset follows a protracted bull market. Historically, a Bull Score of 0 indicated either late-cycle distribution before a trend reversal or macro bottoms as seen in 2020 and ￰8￱ the current levels, the structure appears similar to a late-bull to early-bear transition than a deep capitulation.

Presently, all 10 on-chain components are below trend, including the MVRV , ETF flows, stablecoin liquidity, demand growth, and trader margins. Meanwhile, Exchange-Traded Fund (ETF) and corporate inflows slowed, long-term holders continue to distribute, and stablecoin liquidity remains ￰9￱ Tech noted that market strength is based on constrained supply rather than fresh demand, and momentum has completely cooled. However, IT Tech claims that ETF inflows, liquidity growth, and long-term holder re-accumulation must swiftly return in order for the market to regain strength. Otherwise, Bitcoin enters into a prolonged consolidation phase.

A Change In BTC Market Pattern After examining the Bitcoin Realized Cap , Mignolet, a market expert, has outlined a shift in the current market ￰10￱ the pattern has changed, market interest in BTC is still ￰11￱ pattern is one of the shifts that followed the approval of Bitcoin Spot ￰12￱ ETFs, Mignolet highlighted that most of the attention was drawn by ratio-based data. However, this pattern changed after the BTC Spot ETFs were greenlighted. A look beyond ratios shows that the market is not overheated, but this was not the case, as investor interest was obviously high.