Bitcoin (BTC) has shown a slight recovery, reaching $116,000 on Friday for the first time in three weeks, marking a 1.5% daily gain. Despite this upward price movement, underlying data from CryptoQuant reveals a predominantly bearish outlook. According to analyst JA Maartun, eight out of ten indicators in the CryptoQuant Bull Score Index are flashing red, signaling cooling momentum and potential downward pressure.
The only two indicators remaining bullish are "Bitcoin demand growth" (which has been positive since July) and "Technical signal." The eight bearish indicators include: MVRV-Z score (measuring price versus realized value), profit and loss index, bull-bear cycle indicator, inter-exchange flow pulse, network activity index, stablecoin liquidity, trader on-chain margin, and trader realized price.
Historical context shows that when eight indicators were bearish in April, Bitcoin dropped to $75,000. Conversely, when BTC hit its yearly peak of $122,800 in July, eight indicators were green. The overall Bull Score Index has been oscillating between 20-30 this month during the correction.
Additional analysis shows Bitcoin lagging behind altcoins, stocks, and gold this week. SignalPlus's Augustine Fan noted that net buying momentum has slowed with reduced digital asset treasury buying and low levels of new capital on-ramping to exchanges. Some analysts attribute this to seasonal September corrections while predicting an extended bull market with potential peaks in Q4 2025 or Q1 2026.