Summary
- It was reported that Bitcoin (BTC)'s Bull Score Index dropped from 80 to 60, indicating a risk of short-term correction or slight decline.
- While the current score still points to a bullish phase, upward momentum has slowed and was attributed to profit-taking and declining trading volume.
- CryptoQuant said that if Bitcoin's price drops further and the index falls below 40, it could officially signal a bearish phase, with the Fed's interest rate cut in September seen as an important catalyst.
On the 7th (local time), the cryptocurrency-focused media outlet The Block reported, citing on-chain analytics firm CryptoQuant, that after Bitcoin (BTC) hit an all-time high of $123,218 last month, there is now a risk of a short-term correction or a slight decline.
According to CryptoQuant, Bitcoin's Bull Score Index fell from 80 to 60. This index is a metric that quantifies the level of bullishness in the market based on on-chain data—the closer to 100, the stronger the buying momentum and bullish sentiment. Although the current score still points to a bullish phase, the upward momentum has slowed.
The report analyzed that this index drop reflected profit-taking and the typical summer slowdown in trading volume after the all-time high rally. CryptoQuant warned, "If Bitcoin's price falls further, the index could drop below 40, officially marking a bearish turn for the first time since last April."
Julio Moreno, Head of Research at CryptoQuant, said, "A new bullish catalyst is needed to reignite Bitcoin's uptrend," adding, "An interest rate cut at the Fed meeting in September could be a key factor, and this is something the market is already anticipating."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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