Bitcoin Bull Score Index Climbs to 30, Exiting 'Extra Bearish' Zone

The Bitcoin Bull Score Index from CryptoQuant has bounced back to a score of 30, indicating that while bearish conditions remain, they are less severe than before.

Key Takeaways

CryptoQuant's Bitcoin Bull Score Index has increased to 30, moving out of the 'extra bearish' zone.
The index analyzes ten different market indicators, which have shown slight improvements recently.
Current indicators suggesting bullish sentiments include exchange flows and stablecoin liquidity.
Despite the recovery, the market is still considered to be in a bear phase.
A notable drop in the Realized Profit/Loss Ratio indicates that losses are currently surpassing profits among Bitcoin sellers.

Bitcoin

Overview of Recent Changes in the Bitcoin Bull Score Index

Recently, Julio Moreno, head of research at CryptoQuant, discussed the latest movements in Bitcoin's Bull Score Index on X. This index shows the current market phase of Bitcoin by analyzing data from ten different indicators, each focusing on unique aspects of the network. Key on-chain metrics included in this index are the MVRZ Z-Score, Realized Price, and the CryptoQuant Profit and Loss Index.

The Bull Score Index measures how many of these indicators currently signal a bullish outlook for Bitcoin. For instance, a score of 60 would indicate that six of these indicators are signaling positivity.

Moreno also shared a chart illustrating the Bitcoin Bull Score Index's fluctuations over the past few months:

Bitcoin Bull Score Index

As shown in the chart, the Bull Score Index previously fell to a value of zero, signaling that all ten indicators were bearish on Bitcoin. This came after a sharp decline in the asset's price.

Recently, however, the Bull Score Index has started to rise again, suggesting improvements in the on-chain indicators. Although the increase isn’t drastic, the score has moved up to 30, indicating that three indicators are currently showing bullish signals. "The indicators that showed bullish flags were: exchange flows, stablecoin liquidity growth, and price momentum," Moreno noted.

This upswing has been sufficient to move the Bull Score Index out of the “extra bearish” zone, which consists of scores of 20 and below. The typical bearish zone is defined as scores below 40, meaning at least two additional indicators need to turn positive for the index to escape this state.

Whether this rebound in the Bull Score Index will lead to a more sustained market recovery remains uncertain. Moreno expressed skepticism, stating, “We are still in a bear market, but experiencing a relief rally.”

In related news, recent analysis from on-chain analytics firm Glassnode highlighted that Bitcoin sellers have recently been realizing losses.

Bitcoin Realized Profit/Loss Ratio

The chart from Glassnode shows that the 90-day moving average (MA) of the Bitcoin Realized Profit/Loss Ratio has dropped below the 1 mark, indicating that losses are greater than profits. "Historically, when it dips below the neutral level (~1), such trends have lasted for over six months before recovering," Glassnode explained.

Bitcoin Price Updates

Bitcoin has managed to rebound above the $70,000 mark following a dip to under $66,000 over the weekend.

Bitcoin Price Chart

This chart illustrates the price trend of Bitcoin over the last five days.