Analysts warn the market will face extended consolidation without rapid new institutional demand.
A key on-chain metric used to assess Bitcoin’s upward potential, the Bull Score, has plunged to zero out of a possible 10 points. This marks the first time the score has hit zero since January 2022, the period that preceded the last major bear market.
Data from the on-chain analytics platform CryptoQuant showed the Bull Score indicator registering zero on Thursday. Analysts warned that immediate action is required to avoid a prolonged slump.
The Bull Score is a composite metric designed to evaluate the market’s health and trend by integrating ten distinct on-chain and market indicators across four main categories. This includes Network Activity, Volume, Investor Profitability, and Market Liquidity.
Nevertheless, why are the indicators showing this result? This is because ETF and corporate inflows slowed.
Overall, it’s evident that for a sustained upward rally, new demand must materialize. The current setup, according to the analysts, looks like an early bear-market transition.
