Bitcoin market sentiment worsens as bull score index plunges to 10
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Bitcoin is enduring renewed downward pressure, dropping 5.7% over the past 24 hours and retreating sharply from its brief recovery near $87,000. The leading cryptocurrency is now down about 24.7% from its record above $109,000 posted in January, signaling persistent bearish conditions. Investors are increasingly cautious as on-chain and technical indicators weigh against further upside momentum.
Recent analysis from CryptoQuant underscores the significance of the Bull Score Index for market sentiment. After hovering below the key 40 threshold since Bitcoin traded near $96,000, the index has now fallen to 10, indicating a severe deterioration in sentiment. Such a low score typically implies robust selling pressure and dwindling bullish conviction, while also fueling the possibility of more pronounced volatility. Adding to these concerns, another CryptoQuant metric—Spent Output Age Bands—has registered a surge in activity among older BTC holdings, with over 1,000 coins aged between 7 to 10 years moving on-chain. This spike above the critical 50 mark suggests that certain long-term investors may be considering exit strategies, intensifying supply-side pressures.
Contrasting viewpoints are emerging from purely technical indicators. One market observer, analyst Javon Marks, highlights that Bitcoin’s Relative Strength Index (RSI) remains in a supportive breakout posture on the daily timeframe, referencing previous instances where a strong RSI rebound preceded notable price gains. However, another analyst, Titan of Crypto, cautions that Bitcoin must hold its position within a critical support corridor while maintaining the weekly RSI above specific levels. Failure to do so could trigger an expanded drawdown and prolong the existing market downturn.
Overall, the interplay between bearish on-chain signals and selectively optimistic technical readings paints a complex picture for traders. If the Bull Score Index remains this low and older coin spending continues, BTC may face more downside risk. Yet a sustained RSI breakout or a stabilization of support ranges could spark a recovery. Until then, participants should closely monitor momentum oscillators, on-chain movements, and macroeconomic catalysts to gauge whether the market is poised for a deeper correction or an eventual bullish turnaround.
Recent analysis from CryptoQuant underscores the significance of the Bull Score Index for market sentiment. After hovering below the key 40 threshold since Bitcoin traded near $96,000, the index has now fallen to 10, indicating a severe deterioration in sentiment. Such a low score typically implies robust selling pressure and dwindling bullish conviction, while also fueling the possibility of more pronounced volatility. Adding to these concerns, another CryptoQuant metric—Spent Output Age Bands—has registered a surge in activity among older BTC holdings, with over 1,000 coins aged between 7 to 10 years moving on-chain. This spike above the critical 50 mark suggests that certain long-term investors may be considering exit strategies, intensifying supply-side pressures.
Contrasting viewpoints are emerging from purely technical indicators. One market observer, analyst Javon Marks, highlights that Bitcoin’s Relative Strength Index (RSI) remains in a supportive breakout posture on the daily timeframe, referencing previous instances where a strong RSI rebound preceded notable price gains. However, another analyst, Titan of Crypto, cautions that Bitcoin must hold its position within a critical support corridor while maintaining the weekly RSI above specific levels. Failure to do so could trigger an expanded drawdown and prolong the existing market downturn.
Overall, the interplay between bearish on-chain signals and selectively optimistic technical readings paints a complex picture for traders. If the Bull Score Index remains this low and older coin spending continues, BTC may face more downside risk. Yet a sustained RSI breakout or a stabilization of support ranges could spark a recovery. Until then, participants should closely monitor momentum oscillators, on-chain movements, and macroeconomic catalysts to gauge whether the market is poised for a deeper correction or an eventual bullish turnaround.