astronaut
Walrus
Pearl
Bitcoin
NEAR Protocol
Zcash
Hyperliquid
Bitcoin (BTC) price is showing signs of recovery, reclaiming the $113,000 resistance levels. However, the Bull Score Index signals a bearish outlook and cautious sentiments among Bitcoin investors.
Amid these BTC dynamics, analysts claim the market is set to enter an altcoin season. Still, others believe the broader trend of Bitcoin illustrates its potential as a transformative asset
What the Bitcoin Bull Score Index Reveals
CryptoQuant analyst Maartunn highlighted that the Bitcoin Bull Score has fallen to 20. This decline signals weakening market conditions for BTC, as noted by Maartunn.
The Bull Score Index, developed by CryptoQuant, aggregates multiple on-chain indicators to assess the Bitcoin health on a scale of 0 to 100. A score above 60 indicates a strong bullishness, while prolonged readings below 40 have historically aligned with bear markets.
At press time, BTC price hovered just above $113,000. However, the Bull Score’s plunge to 20 suggests underlying structural weakness despite the price stability.
Adding to the weakened BTC bullish signals are some key onchain indicators. Maartunn noted that the MVRV Z-Score, CQ P&L, Cycle Indicator, and Trader Profit Margin have all entered the bearish zone.
The MVRV Z-Score measures the BTC market value relative to its realized value. A score below 0 implies a buy opportunity, while above 6–7 often marks cycle tops.
Historically, scores below one have preceded bear phases, and the current reading suggests reduced upside potential.
Onchain market analysts agreed with the comments from Maartunn. The analyst spotlighted his post, where he said the BTC Supply in Profit signaled a possible shift into a downtrend phase.
Implications of Bitcoin Dominance Drop on Altcoins
Another market analyst, Mando, outlined a bearish playbook for BTC Dominance (BTC.D). Notably, BTC.D is a ratio between the market capitalization of Bitcoin and the rest of the crypto market.
Mando envisions the BTC.D dropping from 58% to 55%, exhibiting a bearish trend. He claims this decline in Bitcoin dominance will open the way for the next altcoin season.
Typically, a decrease in BTC.D signals reduced BTC price momentum, encouraging rotation towards top altcoins, including Ethereum (ETH), SOL, and XRP.
Ethereum has already outperformed BTC on the weekly charts. While ETH has rallied 7.7% over the past week, BTC declined by 0.13%. Currently, ETH is priced at $4,596, while BTC is valued at $113,035.
Solana is also experiencing momentum, surging by 5.9% over the past 24 hours to $215.4. Likewise, XRP increased slightly by 0.7%, while Binance Coin (BNB) rallied 2.4%, within the same timeframe.
The altcoin surge indicates ongoing capital rotation from BTC into the altcoin market.
Historic Bitcoin Price Timeline Watch
Despite these bearish signals, some analysts remain optimistic about the potential of BTC price in the near term.
“Bitcoin ALWAYS goes up … if you ignore/flatten the bull markets (2013, 2017, 2020/2021)”, says PlanB.
PlanB, the Stock-2-Flow (S2F) model creator, urged investors to focus on BTC baseline adoption and structural growth rather than bull markets, ATH, and timing the tops.
The analyst argued that BTC’s structural growth is what drives its long-term upward trajectory.
Another factor supporting the optimistic outlook for BTC is the recent momentum in the spot ETF market. The 11 BTC exchange-traded funds (ETFs) have seen three consecutive days of inflows since August 25.
The BlackRock iShares Bitcoin Trust ETF (IBIT) leads other funds in inflows. On August 25, IBIT saw inflows that amounted to $63.4 million. These ETF inflows came only shortly after the asset manager purchased 3,089 BTC for $360 million.
In addition, Michael Saylor’s strategy has continued to show commitment to BTC. As the biggest Bitcoin corporate holder, Strategy currently holds 632,457 BTC.
