CryptoQuant\u2019s Bitcoin Bull Score Index has dropped to a value of 20, hinting that a potential bearish transition could have occurred for the asset.<\/p>\n
In a new post<\/a> on X, CryptoQuant community analyst Maartunn has shared how the analytics firm\u2019s \u201cBull Score Index<\/a>\u201d has changed for Bitcoin after its recent price drawdown. The Bull Score Index is an indicator that tells us about the market phase the cryptocurrency is currently going through. It determines this by referring to a bunch of key on-chain metrics.<\/p>\n Below is a chart that shows the trend in the indicator over the past year.<\/p>\n As is visible in the graph, Bitcoin entered into the \u201cbullish cooldown\u201d phase at the start of August. This signal interestingly persisted even when its price set a new all-time high (ATH) later in the month, a potential sign that the breakout was always gonna be short-lived.<\/p>\n In the market downturn that has followed this peak, the Bull Score Index first dipped into the \u201cgetting bearish\u201d zone, and now, it has plunged right into \u201cextra bearish\u201d levels. \u201cThis is something to take serious,\u201d notes Maartunn.<\/p>\n Here is another chart, this one breaking down the individual signals contributing to the Bull Score Index\u2019s value:<\/p>\n As displayed in the graph, almost all of the indicators are giving a bearish signal at the moment. Perhaps the most popular metric on the list is the \u201cMarket Value to Realized Value (MVRV) Z-Score<\/a>,\u201d which relates to investor profitability. It would appear the current market conditions are bad enough to force it to turn red.<\/p>\n Last time the MVRV Z-Score and Bull Score Index turned bearish was back in February of this year. What followed the signal was an extended phase of negative price action for Bitcoin. Given that the Bull Score Index is once again giving an extra bearish indication for the cryptocurrency, it remains to be seen whether its price will now see another transition.<\/p>\n Replying to Maartunn\u2019s post, analyst Ali Martinez<\/a> has agreed with the caution and shared another signal that could point to a similar outcome for Bitcoin.<\/p>\n