Recently, Bitcoin just surged to a historical high—soaring to $123,000, shaking the entire market. But after cooling down, the on-chain data company CryptoQuant poured a little cold water on everyone: this bull may need to take a break.

According to a report released by CryptoQuant on Thursday, Bitcoin is currently entering a "bull market cooling period" stage. What does this mean? It doesn't mean it's immediately turning bearish, but the momentum for growth is somewhat "hitting the brakes." They have a "bullish index," which was previously at 80, but has now dropped to 60. 100 is the strongest bull, 0 is the most bearish bear—60 is still in the bullish range, but it's clearly not as fierce as before.

Why is it cooling down?

CryptoQuant stated that there are two key reasons for this pullback:

Profit-taking—prices have risen too much, and some people are starting to sell coins to lock in profits;

Summer effect—everyone is on vacation, trading is light, and the market isn't as lively.

However, if you think this is the end, they have a more alarming reminder:

"If prices continue to weaken, the bullish index could drop below 40, which would mean the market officially enters a bear market!"

Yes, dropping below 40 = bear market alert, this is the first time facing such a significant risk since April 2023.

But don't panic, CryptoQuant's research head Julio Moreno also offered a glimmer of hope: "If the Federal Reserve really lowers interest rates in September as expected, it could become the catalyst for the next wave of increases."—This means that if the Federal Reserve, this "financial big brother," takes action to inject liquidity, Bitcoin might soar again.