Bitcoin is trading near $118,000 after reaching a high of $123,000 in July. Despite this strong price level, key data points indicate that its momentum is cooling, which could lead to a pause before any further upward movement.
Signs of a Cooling Market
CryptoQuant’s Bull Score Index fell from 80 to 60 following the recent peak. The drop suggests the market has entered a bullish cooldown phase, where overall optimism remains but momentum has softened.
This slowdown aligns with seasonal trends, as summer months often bring lower trading volumes and reduced enthusiasm. According to a CryptoQuant report, traders appear to be taking profits after the rally, which has weakened immediate buying pressure.
Valuation Metrics and Market Outlook
Valuation indicators show the market balanced near a critical point between bullish and bearish zones. The Bull-Bear Market Cycle Indicator remains slightly positive but is close to turning negative.
If bitcoin’s price weakens further, the indicator could drop below zero, pushing the Bull Score Index under 40. Such a move would mark the first formal bearish market since April 2023.
Conclusions and Future Predictions
Given these signals, the analytics firm sees bitcoin entering a cautious phase characterized by slowing momentum instead of a definitive reversal. Market participants need to stay alert for new developments that could spark renewed buying interest and trigger the next price surge.
In the context of slowing growth, Bitcoin may face short-term consolidation or mild price corrections. Market participants should remain attentive to changing conditions.
