According to CryptoQuant, Bitcoin's Bull Score Index has reached 50 for the first time in this bear market, marking a significant milestone in the cryptocurrency's technical outlook. The index, which measures the balance between bullish and bearish sentiment across 10 key indicators tied to network activity, investor profitability, and liquidity, suggests that roughly half of the indicators that define a bullish regime have turned constructive again. This development represents the first time since the bear market began that the index has entered neutral territory, providing important insights into the shifting market conditions. However, CryptoQuant now reports that the index has fallen back to 10 out of 100, describing this reading as "deep in bearish territory" and characterizing recent price moves as "likely just a relief rally, not the start of a new bull phase."
As reported by CryptoQuant, the move to 50 indicates that bullish sentiment has overtaken bearish sentiment in the Bitcoin market, though it remains below the 60-plus threshold that the firm treats as outright bullish. This shift suggests that market participants are becoming more optimistic about Bitcoin's prospects, potentially signaling a potential reversal in the cryptocurrency's price trajectory. The Bull Score Index serves as a reliable indicator of market sentiment and can provide early warnings of potential trend changes in the Bitcoin market, though it does not guarantee future price performance. However, analysts broadly agree that a confirmed trend reversal has not yet occurred, with the index's current position in the 10-100 range indicating that fundamental and technical indicators still point to a bear market environment.
According to CryptoQuant's Julio Moreno, the Bull Score Index serves as a technical indicator that measures the balance between bullish and bearish sentiment across multiple fundamental and technical conditions. The exit from bear territory suggests that the balance of forces has shifted in favor of bullish sentiment, potentially indicating improved market conditions for Bitcoin. However, Moreno cautions that this move to 50 is not confirmation of a durable trend reversal, noting that in March 2022, the Bull Score entered neutral territory for about a week before the price resumed its decline. The current signal remains in an awkward but important middle ground, as it indicates easing selling pressure but has not yet crossed into the bullish regime zone. SwissBlock analysts observed that "momentum is flashing a critical shift," describing the current setup as an exit from peak negative momentum, which they said "often precedes a regime change."
Bitcoin briefly climbed above $74,000 on Thursday before pulling back below $71,000 during Friday morning trading, representing a 4.7% decline from the high. As reported by Cointelegraph, the peak at $74,000 corresponded with the 50-day exponential moving average on Coinbase, according to TradingView data. The brief push higher erased around $4,000 in losses from the February low near $60,000, but failed to hold. Nick Ruck, director of LVRG Research, told Cointelegraph that the rally was driven by renewed risk appetite and Bitcoin ETF inflows, but noted that "the advance quickly faced headwinds with prices pulling back toward $71,000 amid persistent macro uncertainties and fading momentum." He cited anticipated weakness in February nonfarm payrolls as a near-term macro risk that leaves crypto vulnerable to further downside.
