Bitcoin price falls to $84K as CryptoQuant bull score index hits two-year low
The index has plummeted to 20
Bitcoin’s market health is showing signs of deeper weakness, as the Bull Score Index—a key metric from CryptoQuant—has dropped to a low 20.
A decline in the indicator to a critically low level signals possible structural changes in market dynamics, СoinDesk informs.
Key takeaways
- Bitcoin has fallen 23% from its January high, trading near $84,000.
- Bull Score Index: The index has plummeted to 20, suggesting a potential structural shift in market dynamics.
- Investor Sentiment: U.S. spot Bitcoin ETFs recorded net outflows of $180 million in the past 30 days, indicating softening demand.
Price decline and market indicators
Short-term price dips are common during bullish cycles, yet the current pullback may signal a more significant shift. Bitcoin’s descent from $109,000 to $84,000 has rattled investors, fueling debates on whether this marks the onset of a new bear market or is merely a transient correction.
The Bull Score Index—a composite metric that evaluates various on-chain indicators such as transaction volume, active addresses, and holder activity—has now fallen to 20, its lowest reading in two years. This decline suggests that the overall market sentiment for Bitcoin is turning more cautious, potentially reflecting reduced investor confidence.
The CryptoQuant report states, “Historically, bitcoin has only experienced significant price increases when a bullish index exceeds 60, while sustained values below 40 correspond to a bear market.”
Additionally, U.S. spot Bitcoin ETFs have experienced net outflows of $180 million over the past month, underscoring a broader trend of diminishing profitability and waning demand. As traditional financial products linked to Bitcoin show signs of faltering, the technical indicators and reduced ETF inflows hint at a possible structural recalibration within the crypto market.
Outlook for the industry
Market watchers will be closely monitoring whether these trends signal a temporary setback or a more enduring change in Bitcoin’s market dynamics. If Bitcoin fails to recover its lost momentum, the weakened Bull Score and persistent ETF outflows could herald a longer-term bearish phase. However, should new buying interest emerge, the current dip may simply represent an opportunity for future gains.
Read also: Bitcoin miner stocks drop 20–40% as Bernstein lowers forecasts.
