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Bitcoin News Today: Bull Score Plunge Sparks Bear Market Clock Worry

Bitcoin News Today: Bull Score Plunge Sparks Bear Market Clock Worry

ainvest2025/08/29 03:42
By:Coin World

- Bitcoin's Bull Score Index fell to 20, historically signaling bear markets after 60+ days below this level. - Current 2-day sub-20 dip (as of Aug 27, 2025) suggests early consolidation rather than confirmed bearish trend. - On-chain data shows declining exchange reserves and 15% lower trading volumes, while Ethereum dropped 5% to $2,400. - Macroeconomic risks and altcoin declines (e.g., Solana -8%) highlight market fragility amid $55k Bitcoin support level. - Technical indicators show oversold RSI (35) a

The Bitcoin Bull Score Index has dropped to 20, raising concerns among investors and analysts about potential bearish signals in the cryptocurrency market. According to data from CryptoQuant and insights shared by market analyst Julio Moreno on social media platform X, the index currently stands at its lowest level since the onset of the bearish phase in past market cycles. Historically, the Bull Score Index has remained in such bearish territory for over 60 days during major bear markets, such as in 2018 and 2022, often preceding significant price corrections for Bitcoin and other major cryptocurrencies. However, in this case, the index has only remained sub-20 for two days as of August 27, 2025, making it too early to definitively conclude a bear market is underway [1].

The Bull Score Index is a composite indicator that combines on-chain metrics, investor sentiment, and market momentum to assess bullish or bearish trends in the crypto market. When the index falls to levels like 20, it often coincides with heightened volatility and potential capitulation from traders. In prior bear markets, this level was frequently followed by price drawdowns exceeding 70% before recovery phases emerged. This time, the brevity of the drop—just two days—suggests that the market may still be in an early consolidation phase, but analysts are closely watching for confirmation signals such as prolonged low trading volumes or significant breakdowns below key support levels. For instance, if Bitcoin fails to hold above $55,000 in the near term, it could reinforce bearish assumptions and open the door for short-selling activity in derivatives markets [1].

On-chain data provides additional context to the current bearish signals. Bitcoin’s exchange reserves have been declining, indicating reduced selling pressure from long-term holders. However, trading volumes across major crypto pairs have dropped by approximately 15% over the last 48 hours, signaling cautious market participation. Ethereum , in particular, has shown vulnerability, with its price hovering around $2,400, a 5% decline over the past week. Institutional inflows into crypto have remained positive but subdued, with roughly $200 million in net inflows recorded in the past week. This dynamic creates opportunities for both contrarian buyers and risk-averse traders: those targeting resistance levels for Bitcoin may look toward $60,000, while others might hedge their positions using options strategies to prepare for a potential volatility spike [1].

The drop in the Bull Score Index coincides with broader macroeconomic uncertainties, including potential interest rate adjustments and geopolitical tensions that often ripple into crypto markets. Altcoins such as Solana (SOL) and Chainlink (LINK) have mirrored Bitcoin’s bearish sentiment, with SOL dropping by 8% in 24 hours to around $140. Traders are also monitoring cross-market correlations, such as Bitcoin’s relationship with stock indices like the Nasdaq, where AI-driven tech stocks could serve as hedging avenues. If the Bull Score rebounds quickly, it may indicate a false alarm, prompting a wave of dip-buying in high-conviction tokens. Conversely, an extended period—beyond 60 days—at this low level could trigger cascading liquidations, emphasizing the importance of stop-loss orders and diversified portfolio strategies [1].

For active traders, technical indicators offer additional insights. The Relative Strength Index (RSI) for Bitcoin currently sits at 35 on the daily chart, suggesting oversold conditions that could precede a price rebound. Meanwhile, a crossover below the 200-day moving average could confirm bearish momentum. On-chain analytics also reveal increased whale activity, with large Bitcoin transfers exceeding 1,000 BTC in a single day observed recently. If the Bull Score Index rebounds above 50 within the coming week, it could spark a relief rally, pushing Bitcoin toward $65,000 and Ethereum toward $2,800. Traders are advised to monitor key timestamps, such as end-of-month closes, for potential turning points. While it is still early in the market’s development, the Bull Score Index underscores the necessity of data-driven decision-making in navigating the crypto market’s high volatility, blending historical patterns with real-time analytics for strategic outcomes [1].

Bitcoin News Today: Bull Score Plunge Sparks Bear Market Clock Worry image 0
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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