CryptoQuant Signals Predominantly Bearish Outlook for Bitcoin
Most major market indicators for Bitcoin have shifted to a bearish stance, even as the cryptocurrency managed a modest recovery to $116,000 on Friday. According to blockchain analytics firm CryptoQuant, eight out of ten indicators in its Bull Score Index now suggest a cooling market, raising questions about the near-term trajectory of the leading digital asset.
Mixed Signals From Key Analytics Platforms
CryptoQuant's Bull Score Index draws insights from ten different indicators. Only two � 'Bitcoin demand growth' and 'Technical signal' � remain bullish, with demand growth maintaining a positive outlook since July. The technical signal indicator, which synthesizes common price trend metrics, also remains positive. However, other indicators, such as the MVRV-Z score (comparing market price to realized value), profit and loss indexes, bull-bear cycle gauge, inter-exchange flow pulse, network activity, stablecoin liquidity, trader onchain profit margin, and trader realized price, all present bearish signals.
This shift echoes similar market conditions last seen in April, when eight out of ten Bull Score Index signals turned bearish ahead of Bitcoin's drop to $75,000. By contrast, in July, most of these indicators were bullish as Bitcoin reached a peak near $122,800.
Market Context and Broader Sentiment
Other analytical tools confirm mixed market sentiment. The CoinGlass Crypto Bitcoin Bull Run Index (CBBI), which aggregates nine metrics related to the bull cycle, currently stands at 74 out of 100, indicating that the market may be three-quarters through the current run. Despite this, only one out of thirty CoinGlass peak bull market signals � the altcoin season index � has activated.
Augustine Fan, head of insights at SignalPlus, noted that Bitcoin's performance has lagged both its crypto peers and traditional assets such as equities and gold this week. "Net buying momentum has slowed," Fan remarked, pointing to decreased digital asset treasury activity and low new capital inflows to centralized exchanges. According to Fan, investors are currently showing a preference for equity-linked exposure over direct cryptocurrency acquisitions.
Outlook for Bitcoin and Market Dynamics
Despite the prevailing caution, some commentators expect further upside. Tony Edward, a crypto podcaster, observed that global liquidity is recovering and suggested that the current bull cycle could extend, potentially culminating in a local top in Q4 2025 and a blowoff top in early 2026.
With Friday's price action, Bitcoin is now only 6.8% below its all-time high. The depth of the current correction remains shallower compared to previous market cycles, adding to the uncertainty around the future direction of the market.
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