According to BlockBeats news, on August 8, blockchain data analytics company CryptoQuant pointed out that Bitcoin is showing signs of short-term consolidation or mild downward risk after reaching a historic high of $123,000 last month.
The company stated in a report released on Thursday: "Bitcoin has entered a cooling period in the bull market, with the bullish index dropping from 80 to 60. Although the overall environment remains positive, upward momentum is weakening. CryptoQuant's bullish index assesses the strength of the Bitcoin market through multiple on-chain indicators, with values close to 100 representing strong buying and bullish sentiment, while values close to zero indicate heavy selling pressure."
CryptoQuant analysis indicates that the current index value of 60 is still within the bullish range, but the momentum continues to fade. The index's decline reflects profit-taking after reaching a historic high and includes seasonal slowdowns in summer trading activity. The report specifically warns: "If prices weaken further, this indicator may drop into negative territory, causing the bullish index to fall below 40 for the first time since April 2023—this would officially confirm a market transition into a bear market."
CryptoQuant research director Julio Moreno added: "The Fed's rate cut in the September meeting may become a new catalyst, which aligns with the market's general expectations."
