Bitcoin Bull Score Surges To 30, Exits 'Extra Bearish' Zone

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 Uptick

In a new post on X, CryptoQuant head of research Julio Moreno has talked about the latest trend in the Bull Score Index for Bitcoin. This indicator basically tells us about the phase of the market that the cryptocurrency is currently in. The metric determines this by referring to the data of ten indicators covering different aspects of the network. Some of the major on-chain indicators part of the index include the MVRZ Z-Score, Realized Price, and CryptoQuant P&L Index.

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The 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:

The value of the metric seems to have gone up in recent days | Source: @jjcmoreno on X

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.”

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In some other news, Bitcoin sellers have taken to loss-taking on the net recently, as on-chain analytics firm Glassnode has pointed out in an X post.

How the Realized Profit/Loss Ratio has changed for BTC over its history | Source: Glassnode on X

From the chart, it’s visible that the 90-day moving average (MA) of the Bitcoin Realized Profit/Loss Ratio is now under the 1 mark, meaning losses are outpacing profits. “Historically, breaks below the neutral level (~1) have persisted for 6+ months before reclaiming it,” said Glassnode.

BTC Price

Bitcoin has already recovered back above the $70,000 level from its dip under $66,000 during the weekend.

The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView