- Bitcoin’s Bull Score Index stayed below 50 for 58 days signaling ongoing bearish conditions.
- Previous drops in Bitcoin prices followed long stretches of low Bull Score Index.
- A shift above 50 in the Bull Score Index could indicate a potential price reversal.
The Bull Score Index, as per CryptoQuant, reading below 50 for 58 consecutive days, indicates a strong bearish trend for Bitcoin. This situation matches some earlier periods, during which Bitcoin experienced major price corrections. Hence, the analysts are closely watching this historically relevant formation.
Also, the data confirms about this index behavior during previous corrections, namely, July 2021, January 2022, and June 2022. In all these instances, Bitcoin gave a drastic fall after the index remained below 50 for 60 days straight. Thus, the ongoing trend has rekindled fresh caution toward the market.
Prolonged Bearish Patterns Reflecting Past Downtrends
The Bull Score Index monitors how often bullish conditions have existed over the last 60 days; this defines a ceiling on the price falling over the immediate term. The score remains at 50 or below, while investor resistance dominated. The most recent stretch of 58 days indicates that negative forces may continue to dominate over the foreseeable Bitcoin price.
In addition, Bitcoin’s price is now further below recent highs, which is another concern. The most recent down move occurred after Bitcoin peaked somewhere close to $73,000 at the beginning of this year. In that decline, Bitcoin fell sharply from the peak and was now trending lower on relatively weak bullish support. Price action matches Bitcoin’s bearish rocket signal.
Past Patterns Suggest Downside Risk Next
The more important thing here is that past bears on the CryptoQuant board were shown to last long and then come off with agonizing corrections. In January 2022, for instance, when the Bull Score Index had shown sustained bearishness, Bitcoin dropped from around $47,000 to below $30,000. Mid-2021 presented a similar scenario wherein the index indicated considerable bearishness before going for a slump.
On top of that, on-chain signals also show decreasing investor confidence. The exchange inflows keep rising while bullish trading sessions dwindle, creating an impact against momentum. Bearish sentiment in the market is yet again reinforced by this scenario in which the Bull Score index is at the forefront.
Forbearance Influence: Consistent Bearish Days Capping Upside Momentum
Further limiting bullish days, that index recorded very few of them. Very few days ever crossed the 50 mark since the early February days. This continuous trend speaks of sellers being incontrol, believing any hope for a sharp reversal unless these index readings rally more bullish.
Julio Moreno, Head of Research for CryptoQuant, is the one that shared the chart outlining this behavior. He stressed that said behavior has gone before major corrections in the past. While the current 58-day reading has not matched the past 60-day tally before correcting, the mirror similarity counts for a lot. As such, the market has cajoled cautious watchers as the index increasingly nears this milestone.
Market Awaits Recovery Signals in the Index
Therefore, traders await any possible recovery signal. Once the Bull Score Index exceeds 50, this will be taken to signal a changing environment. Until the time is right, however, all the bearish trends will dictate Bitcoin’s near-term price action. These patterns typically take longer to react, and all conditions show that more pressure awaits before another change.
