Bitcoin’s bearish momentum intensified today as the CryptoQuant Bull Score Index dropped to a concerning level of 10, signaling severely negative market sentiment. The recent market turmoil, sparked by Trump’s global tariff announcements, has pushed BTC down 5.7% in the past 24 hours.
Currently trading well below the $87,000 mark, Bitcoin has declined approximately 24.7% from its January all-time high above $109,000. This significant correction has triggered multiple bearish indicators that deserve close attention from traders and investors.
Understanding the Bull Score Index Collapse
CryptoQuant analyst Julio Moreno’s latest analysis reveals that the Bull Score Index has been flashing warning signals since Bitcoin traded near $96,000. The index’s dramatic fall to 10 represents one of its lowest readings in recent months, suggesting extreme bearish sentiment in the market.
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Long-Term Holder Activity Raises Concerns
Adding to the bearish outlook, CryptoQuant analyst Maartunn identified significant movement among long-term Bitcoin holders. Over 1,057 BTC that remained dormant for 7-10 years have recently become active, potentially indicating selling pressure from veteran investors.
Technical Analysis Shows Mixed Signals
Despite the overwhelmingly bearish sentiment, some analysts maintain optimism. Technical analyst Javon Marks points to the Relative Strength Index (RSI) maintaining key support levels, suggesting potential for a recovery. However, critical support at $78.6K remains crucial for preventing further downside.
FAQ Section
Q: What does a Bull Score Index of 10 indicate?
A: This extremely low reading suggests severe bearish sentiment and significant selling pressure in the Bitcoin market.
Q: How significant is the movement of long-term holder coins?
A: When coins that haven’t moved for 7-10 years become active, it often precedes increased selling pressure and potential market volatility.
Q: What are the key support levels to watch?
A: Traders should monitor the $78.6K level as crucial support, with secondary support at $75K.