CryptoQuant’s Bitcoin Bull Score Index has jumped to a value of 30, indicating bearish conditions persist for the asset, but are no longer as extreme.
Bitcoin Bull Score Index Has Seen A Small UptickThe Bull Score Index’s value corresponds to the number of these metrics that are currently giving a bullish signal for BTC. For example, a value of 60 implies six indicators are giving the green light.
Now, here is the chart shared by Moreno that shows how the Bitcoin Bull Score Index has fluctuated over the last few months:
As displayed in the above graph, the Bitcoin Bull Score Index dropped to a value of zero earlier, implying that all ten indicators turned bearish on the digital asset. The red signals on the metrics came after the asset’s price experienced a significant drawdown.
Recently, the Bull Score Index has observed some recovery, implying improvements in on-chain indicators. The surge hasn’t been too massive, however, taking the metric to a value of 30, corresponding to just three indicators giving bullish signals. “Bull flags that turned on were: exchange flows, stablecoin liquidity growth, and price momentum,” explained the analyst.
Nonetheless, the jump has been enough to lift the Bull Score Index out of the “extra bearish” zone, corresponding to values of 20 and below. The normal bearish zone has its cutoff at 40, so at least two more indicators will have to turn green before the indicator can escape it as well.
Whether the current Bull Score Index recovery will actually lead to it escaping the bearish territory may come down to whether the market recovery is part of a wider shift. The CryptoQuant head doesn’t think it’s the case, noting, “We are still in a bear market, but in a relief rally.”
Bitcoin has already recovered back above the $70,000 level from its dip under $66,000 during the weekend.
