Bitcoin Bull Score Reset: Long-Term Consolidation Expectation

Bitcoin's (BTC) Bull Score has dropped to zero for the first time since 2020, indicating a serious weakening of market strength. CryptoQuant analysts emphasize that the Bitcoin Bull Score's decline to zero was last seen in January 2020, during the pre-pandemic dip period. However, this situation may carry a different meaning from previous examples, especially considering the current market dynamics.

According to analysts, the current zeroing situation may represent a fatigue phase of an extended bull cycle. The report reveals that all 10 on-chain metrics (MVRV, ETF inflows, stablecoin liquidity, demand growth, trader margins, etc.) among Bitcoin's fundamental indicators are trending down. Particularly during a period when ETF and institutional fund inflows have slowed, the continued selling by long-term holders (LTH) reinforces the market's weakness. It is also noteworthy that the liquidity of stablecoins has contracted.

CryptoQuant analysts point out that the current momentum seems to be a temporary strengthening driven by supply constraints rather than a new demand surge. One of the prominent questions is how the bull trend can be restored. In this context, it is stated that ETF inflows need to increase again, liquidity growth must accelerate, and long-term investors should start accumulating once more. Otherwise, Bitcoin's price is expected to enter a prolonged consolidation period.

Historically, periods when the Bull Score hits zero have marked significant market bottoms (2020, 2022) and distribution phases at the end of bull cycles. However, CryptoQuant analysts indicate that a transition to a late bull/early bear phase is more likely this time. Key points for investors to monitor include an increase in ETF inflows, growth in market liquidity, and renewed buying by long-term investors.