Bitcoin Bull Score Reaches Rare Historical Mark - A Unique Market Signal

Bitcoin Bull Score Reaches Rare Historical Mark - A Unique Market Signal

Bitcoin has recently displayed strong bullish momentum, with prices climbing back toward the $97,000 mark after enduring several weeks of downward pressure. For much of this time, the market faced challenges due to selling from short-term traders and cautious positions from investors unsure of the overall trend.

However, this dynamic seems to be changing. Although price movements alone do not confirm a complete trend reversal, the latest rebound indicates that the selling pressure is easing and that buyers are beginning to step in more decisively.

This positive shift in price behavior is backed by a solid on-chain context, not just speculation. A notable observation from a CryptoQuant analyst points to a significant development in market sentiment: the Bitcoin Bull Score Index has fallen to 20, a level that has only been reached a handful of times in the past six years. Such low scores generally indicate a deeply pessimistic market, characterized by a lack of bullish signals across various indicators.

Interestingly, these low-score environments often correspond with transitional phases rather than prolonged declines. When bearish sentiment becomes widespread and optimism dips significantly, markets typically become more responsive to even slight upticks in demand.

Understanding the Bitcoin Bull Score Index

In the last six years, the Bitcoin Bull Score Index has only dipped to 20 or below on seven occasions. Currently, we are witnessing the seventh instance, marking this sentiment environment as one of the rarest in Bitcoin’s history.

This index combines various on-chain and market indicators to determine whether conditions are favorable for bullish continuation or indicate a broader weakness. Scores around 20 suggest that only a few bullish signals are present at the same time, showing that caution dominates over optimism in the market.

Bitcoin Bull Score Index | Source: CryptoQuant

Historically, such extreme readings tend to emerge during transitions. They often occur late in correction phases, when selling pressure has waned but investor confidence has yet to bounce back. While this does not automatically signal an immediate reversal, it does imply that downward momentum may be weakening, as many traders looking to reduce risk may have already done so.

The timing of this indicator is particularly significant as Bitcoin approaches a critical psychological level near $100,000. This value represents a major round-number resistance point as well as a key psychological threshold for both short-term and long-term investors.

The next few weeks will be crucial. A sustained increase toward and above the $100K mark, paired with improving breadth in on-chain indicators, could indicate a shift away from defensive trading. On the flip side, failing to break through this level might reinforce consolidation and prolong market uncertainty.

Weekly Chart: Signs of Recovery Near Resistance

Bitcoin’s weekly chart reveals that the market is attempting to reclaim strength after a lengthy corrective period, with the price currently around the $96,000–$97,000 range. This area is technically significant since it aligns with a previous consolidation band that served as support in mid-2025 before turning into resistance following the decline in November. The recent bounce suggests that buyers are keen to defend higher lows, although confirmation is still pending.

Bitcoin testing key resistance level below $100K | Source: BTCUSDT chart on TradingView

From a trend perspective, Bitcoin is currently trading below the declining 50-week moving average, which limits upward attempts. This level has historically acted as resistance during previous transitions from bearish to neutral trends, making it a vital target for bulls to reclaim for continued upward momentum.

Beneath the current price, the 100-week moving average is still inclined upwards and has provided structural support during recent pullbacks, suggesting that the broader market framework remains intact despite recent short-term challenges.

Furthermore, the volume dynamics are noteworthy. The rebound towards $97,000 has occurred without a significant surge in volume, indicating that the move may still be lacking strong conviction. This aligns with the assessment that the present upswing could be a recovery phase within a broader consolidation, not the initiation of a new bullish impulse.

If Bitcoin can maintain consolidation above $95,000 and ultimately recover the 50-week moving average, the chances of moving towards the $105,000–$110,000 range will increase. Conversely, failing to sustain this zone could lead to renewed downward tests toward the mid-$80,000s, keeping the broader consolidation unresolved.

Key Takeaways:

Bitcoin has recently gained bullish momentum, pushing prices towards $97,000.
The Bitcoin Bull Score Index has dropped to 20, a level reached only seven times in six years, indicating a rare market sentiment.
Historical data suggests that such low scores often occur during transitional phases rather than prolonged declines.
Bitcoin is approaching a crucial resistance level near $100,000, which will be key in determining future trends.
Volume dynamics indicate that the current recovery might be part of a larger consolidation rather than the start of a new upward trend.

Featured image from ChatGPT, chart from TradingView.com.