Bitcoin Bull Score Hits 90, but Demand Slows, Analysis Shows
Summary
- CoinDesk reported that CryptoQuant’s Bull Score has reached 90 out of 100, a level interpreted as signaling Bitcoin’s entry into a bull-market phase.
- It said Bitcoin spot demand has fallen by about 170,000 tokens over the past 30 days, while apparent demand has also been declining throughout September.
- It also said the increase in Bitcoin futures demand has plunged by about 90% in 15 days, making it even harder for the cryptocurrency to sustain further gains in the short term.
Forecast Trend Report by Period
Bitcoin’s bull-market indicator has climbed close to its highest level, but buying demand in both the spot and futures markets is weakening at the same time, suggesting the cryptocurrency’s short-term upside is losing momentum.
CoinDesk reported on September 30 that CryptoQuant’s Bull Score currently stands at 90 out of 100. The indicator assesses Bitcoin’s market phase by combining on-chain and market data.
CoinDesk said Bitcoin’s move above its 365-day moving average last week drove a sharp rise in the Bull Score. A break above the long-term moving average is one of the key signals used to confirm the start of a bull market.
Actual demand for Bitcoin, however, has been declining. According to CryptoQuant, spot demand for Bitcoin fell by about 170,000 tokens over the past 30 days. Apparent demand, which is calculated using new mining supply and changes in Bitcoin that has not moved for more than a year, also trended lower throughout September.
The decline in futures-market demand was even steeper. The increase in futures demand dropped to 16,000 Bitcoin on September 29 from about 164,000 Bitcoin on September 14. That marks a roughly 90% plunge in 15 days.
Julio Moreno, CryptoQuant’s head of research, said the rally will be difficult to sustain without an influx of new demand. With spot demand still weak and growth in futures demand also stagnating, it is becoming even harder for Bitcoin to extend its gains in the short term, he added.
As of 1:50 p.m., Bitcoin was trading at $83,230, up 0.21% from a day earlier, according to CoinMarketCap.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.