Recent data released by CryptoQuant reveals that most of the Bitcoin 
$64,051 bull market indicators have turned red. Analyst Maartun’s “Bull Score Index” monitors ten different on-chain and market-based metrics. Currently, only two indicators—demand growth and technical momentum—remain in the positive zone, while eight others, including network activity, stablecoin liquidity, margin positions, realized price, and MVRV-Z score, signal a downward trend.
Is the Bull Market Ending?
Maartun noted a similar weakening of momentum as was observed back in April. During that period, Bitcoin fell to $76,000. However, when BTC climbed to $122,800 in July, most indicators were positive. This suggests the current technical outlook might be indicating a potential correction phase.
Some investors attribute Bitcoin’s weak performance to September historically being a low-yield month. Despite short-term pressures, there is speculation that the overall cycle may set the stage for a longer-term bull market after corrections. Expectations of interest rate cuts and strong inflows into spot Bitcoin ETFs could support the price if demand remains steady.
Nonetheless, analysts warn about ongoing high volatility. Inflation data and global risk factors will influence market behaviors. The actions of long-term investors appear stable. On-chain data indicates that investors with strong conviction continue accumulating during downturns, and should speculative capital return, a recovery is highly probable.
Are Technical Data Weakening?
Recent inflows of hundreds of millions of dollars into Bitcoin spot ETFs point to institutional investors maintaining a bullish outlook. However, the weakening technical data suggests that this interest may not have an immediate positive effect on prices. Thus, it’s crucial for investors to develop strategies considering both ETF inflows and on-chain metrics along with macroeconomic data.
