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

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