Bitcoin Bulls in Trouble as CryptoQuant’s Bull Score Index Sinks to Lowest Level Since 2023

Bitcoin Market Faces Pressure as Bull Score Index Hits Two-Year Lows

A key metric tracking Bitcoin’s market health has fallen to its lowest point in two years, raising concerns about a potential shift in sentiment.

Bitcoin was trading at around $84,000 on Friday morning in Europe, marking a 23% decline from its January peak of $109,000. The drop has fueled debate over whether this is a routine correction within a broader bullish cycle or the start of a prolonged downtrend.

While Bitcoin has historically seen sharp declines during bull runs, on-chain data from CryptoQuant’s Bull Score Index suggests that this downturn may signal deeper market weakness.

The index evaluates Bitcoin’s market strength based on ten key factors, including investor profitability, liquidity, and network activity, assigning a score between 0 and 100. Typically, readings above 60 indicate strong bullish conditions, while extended periods below 40 align with bearish phases.

Currently, the Bull Score Index sits at just 20—the lowest reading since January 2023, when Bitcoin was priced near $16,000 following the FTX collapse. Eight of the ten key indicators tracked by the index are flashing bearish signals, with network activity and liquidity showing notable declines since December 2024.

“Historically, Bitcoin’s most significant rallies have occurred when the Bull Score remains above 60, while prolonged readings below 40 have correlated with market downturns,” CryptoQuant analysts said in a report released Thursday.

Short-term investor profitability has also taken a hit, with many traders holding unrealized losses. At the same time, U.S. spot Bitcoin ETFs—once strong buyers—have recorded net outflows of $180 million over the past month, among the highest since their introduction in early 2024.

In past cycles, extended periods of a low Bull Score Index have often preceded sustained market weakness, such as the 2022 bear market, which saw Bitcoin drop over 60% from its peak.

The next few weeks will be crucial. If the index recovers, Bitcoin could regain its bullish momentum. However, if the metric remains depressed, further downside pressure could emerge, with analysts closely watching the $80,000 support level as a key test for the market.

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