Bitcoin rally shows signs of cooling even as a 'bull score' gauge nears its perfect score
Bitcoin's recent price rally is showing signs of exhaustion as spot demand contracts and speculative futures growth stalls. On-chain data indicates that while the market remains in a bull phase, profit-taking and increased exchange deposits suggest a potential near-term cooling period.
Why it matters
Understanding market sentiment and on-chain metrics is essential for investors navigating the volatility of digital asset markets.
Bitcoin rose 0.4% to just above $83,300 as of Wednesday Asian morning hours, down from an eight-month high near $87,400.
CryptoQuant, an onchain analysis firm, pegs its Bull Score at 90 out of 100. The score rolls onchain and market indicators into a single reading, and it jumped after bitcoin broke above its 365-day moving average last week, a break the firm treats as confirmation of a bull market.
The buying behind that move is already fading. CryptoQuant estimates spot demand has shrunk by about 170,000 BTC over the past 30 days.
SOL and ZEC led the majors, each up nearly 2%, to about $119 and just above $1,400. XRP gained about 1% to just under $1.50, and ether, BNB and TRX each added less than 1%, CoinDesk data shows.
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