Has Bitcoin Entered a Bear Market? CryptoQuant Data Has Dropped to a 2-Year Low! - Coin Bulletin

Bitcoin (BTC), having experienced a 23% loss from its recent peak, has sparked discussions about whether a new bear market has begun in the markets.

It is difficult to find a definitive answer as to whether the recent decline is a short-term correction or the beginning of a long-term bear market. To answer this question, CryptoQuant developed the Bull Score Index by analyzing key indicators such as Bitcoin's network activity, investor profitability, demand, and market liquidity. This index shows that values above 60 indicate a strong investment environment, while values below 40 indicate a bear market.

As of today, the index is at 20, the lowest level since January 2023. This indicates the weakness in the markets and suggests that the recent price decline may not be a short-term correction, but part of a longer-term downward trend.

In the past, Bitcoin only experienced significant price increases when the Bull Score index was above 60. Periods below 40 were generally associated with bear markets.

Low Bull Score may be a sign of a bear market

If the Bull Score index remains below 40 for an extended period, this may indicate that Bitcoin could enter a broader bear market and that market conditions could continue to deteriorate.