Bitcoin’s bullish sentiment shows signs of fatigue as eight out of ten key indicators turn negative, although BTC price remains above $116,000, suggesting sustained but weakening demand.
Despite a recent rebound above the $116,000 mark, key Bitcoin market signals are increasingly suggesting a potential shift towards bearish conditions. Analysis indicates a possible slowdown in the ongoing bull run.
According to data insights from CryptoQuant, their Bull Score Index, comprised of ten distinct metrics, currently shows eight indicators trending negatively. Only continued growth in Bitcoin demand and a general technical analysis signal remain supportive of upward price action.
Decoding Bitcoin’s Bullish and Bearish Signals
The Bull Score Index is constructed from ten diverse signals encompassing both on-chain data and market activity. These indicators include metrics like the MVRV-Z score, which compares Bitcoin’s market capitalization relative to its realized value.
Other factors include profit/loss ratios among traders, the current phase of the bull-bear market cycle, inter-exchange token movement, and network activity. These factors combined provide insight into trading dynamics and the ongoing health of the Bitcoin network.
Currently, only indicators measuring the growth in demand for Bitcoin and the standard technical signals are painting a positive picture.
🐻 Caution Ahead?
8 out of 10 signals in the CryptoQuant Bull Score Index are flashing bearish for Bitcoin.
Momentum is clearly cooling. pic.twitter.com/WszRLeYMfp
— Maartunn (@JA_Maartun) September 11, 2025
The continued expansion in demand highlights consistent interest in Bitcoin since July, while the technical signal corresponds with established chart patterns.
However, other key metrics have recently turned bearish. These include the realized price paid by traders and stablecoin liquidity levels. These measures are critical indicators of capital inflows and overall profitability. The shift suggests that investors are becoming more cautious about aggressive Bitcoin buying.
Historical Significance of Bitcoin’s Market Indicators
The previous instance of eight out of ten Bitcoin bull indicators turning negative occurred in April, after which the price of Bitcoin experienced a significant correction, falling to $75,000.
Conversely, when eight of the ten indicators were showing bullish signals in July, Bitcoin subsequently reached $122,800, marking its yearly high to date.
This historical contrast underscores the importance of the current indicator shift. While Bitcoin’s price resilience exceeds previous corrections, the metrics suggest the overall market is losing energy.
CryptoQuant’s Bull Score Index has maintained a level between 20 and 30 throughout the month of September, reinforcing the notion that the current bull market may be losing momentum.
Broader Market Sentiment Beyond Bitcoin
Beyond CryptoQuant’s Bull Score Index, other market indicators are also showing mixed signals. CoinGlass’s Bitcoin Bull Run Index, incorporating nine distinct metrics, currently registers a score of 74.
This indicates that the current bull run might be approximately three-quarters complete. However, only one of the 30 peak indicators tracked by CoinGlass has been triggered.
That indicator is the Altcoin Season Index.
This aligns with analysis suggesting that alternative cryptocurrencies and traditional equities are currently attracting greater attention than Bitcoin.
Diverging Analyst Perspectives on the Future
Certain analysts interpret the current market cool-down as a typical September correction, rather than the definitive end of the broader bull market. Crypto commentator Tony Edward pointed out that liquidity has rebounded and may reach new peaks.
His prediction suggests a continued bull run, with a potential local top in the fourth quarter and a final surge early next year.
Meanwhile, Galaxy Digital CEO Mike Novogratz offered a cautiously optimistic perspective. He suggested that Bitcoin is currently consolidating while corporate treasuries are increasingly allocating capital into altcoins like Ethereum and Solana.
Companies such as BitMine Immersion Technologies and Forward Industries have announced significant investments into altcoin holdings, contributing to the momentum outside of Bitcoin.
Novogratz also indicated that Bitcoin could potentially rally as the Federal Reserve initiates a cycle of interest rate cuts.
Recent Bitcoin Price Performance
On Friday, BTC successfully reclaimed the $116,000 level, showing a daily gain of 1.5%. This move represents its highest price in the past three weeks. Despite the bearish signals observed in Bitcoin’s bull indicators, its price remains just 6.8% below its all-time peak.
In comparison to previous market cycles, the current correction is relatively mild.
This resilience gives some traders confidence that the upward trend remains intact, despite the short-term conditions appearing less favorable.