CryptoQuant's Bitcoin Bull Score Index has surged to a value of 30, indicating that while bearish conditions persist for the asset, they are no longer as extreme. The index, which tracks ten key on-chain indicators, had previously plummeted to zero, signaling all metrics were bearish following a significant price drawdown. The recent recovery to 30 means three indicators have turned bullish: exchange flows, stablecoin liquidity growth, and price momentum.
This uptick has lifted the index out of the "extra bearish" zone (values of 20 and below), though it remains within the broader bearish territory, which has a cutoff at 40. CryptoQuant head of research Julio Moreno commented on the shift, stating, "We are still in a bear market, but in a relief rally." This sentiment is echoed by other on-chain data; Glassnode reported that the 90-day moving average of Bitcoin's Realized Profit/Loss Ratio has fallen below 1, indicating losses are now outpacing profits. Historically, such breaks below neutral have persisted for six months or more.
Concurrently, analysis from Alphractal reveals that Bitcoin liquidation clusters are becoming clearer, with traders showing a bullish bias. The majority of new open positions are longs, with maximum pain for these positions concentrated around the $61,000 level, while short positions are clustered near $75,000. This suggests traders are anticipating a potential upward move if key support holds.
Despite volatile, sideways price action, capital storage within the Bitcoin network is growing. Analysis of the Realized Value to Transactions (RVT) Ratio, specifically its 28-day moving average (RVTS), indicates that the amount of capital being held is increasing faster than on-chain economic activity. This pattern is typical of accumulation phases. At the time of reporting, Bitcoin was trading at $71,518, having recovered above the $70,000 level with a nearly 3% bounce in the last 24 hours.
