Analysis Company Declares a "Bull Pause" for Bitcoin: Here’s the Event That Could Trigger the Real Mega Bull Again!
Crypto analysis company CryptoQuant reported that Bitcoin has entered a short-term consolidation or slight downward risk phase and that the market is experiencing a pause in its upward momentum.
According to the report released by the company, after Bitcoin reached its all-time high of $123,000 in June, the market entered a "bull pause."
CryptoQuant noted that the Bull Score Index, which it uses to measure market strength, has dropped from 80 to 60. While this decline still shows that the overall outlook remains positive, it indicates that market momentum has begun to weaken.
The report states, "Bitcoin has entered a pause period in the bull market. The decline in the index reflects both profit realizations and the seasonal decrease in trading volume observed during the summer months," and warns that a drop of the index below the 40 level could signal a bear market for the first time since April 2023.
CryptoQuant also mentioned that on-chain indicators confirm this weakening. In particular, the stagnation of stablecoin liquidity indicates that new capital inflows into the market have decreased. Although Tether (USDT) liquidity has increased by $9.6 billion in the last 60 days, it was reported that this growth has now slowed and has fallen below the trend.
Additionally, the on-chain profit margin signal turning red shows that investors have realized significant profits recently and that unrealized profits are now decreasing. This situation indicates a classic profit-taking period.
