Bitcoin’s Bull Run Hits Turbulence as Key Market Indicators Flash Red

Bitcoin's momentum stalls as critical bullish signals reverse—just when traditional finance thought they'd figured us out.

Technical Breakdown: Red Across the Board

Multiple momentum indicators flipped negative this week, catching many momentum traders off guard. The sudden shift follows months of sustained upward movement that had analysts nodding sagely about 'institutional adoption.'

Market Psychology Shift

Fear replaces greed as long-term holders start taking profits. Retail investors who bought the top now face the classic crypto dilemma: hold through volatility or cut losses.

Institutional Impact

Wall Street's latest crypto darling suddenly looks less attractive to fund managers who just discovered volatility works both ways. The same firms that praised Bitcoin's 'store of value' narrative now whisper about 'asset reallocation.'

Looking Ahead: Correction or Trend Reversal?

History suggests Bitcoin survives these shakeouts—emerging leaner and more focused. The weak hands sell to the strong, and the cycle continues. Meanwhile, traditional finance will probably use this as another excuse to push their watered-down ETF alternatives.

Recent data released by CryptoQuant reveals that most of the Bitcoin$0.000023 bull market indicators have turned red. Analyst Maartun’s “Bull Score Index” monitors ten different on-chain and market-based metrics. Currently, only two indicators—demand growth and technical momentum—remain in the positive zone, while eight others, including network activity, stablecoin liquidity, margin positions, realized price, and MVRV-Z score, signal a downward trend.

Is the Bull Market Ending?

Maartun noted a similar weakening of momentum as was observed back in April. During that period, Bitcoin fell to $76,000. However, when BTC climbed to $122,800 in July, most indicators were positive. This suggests the current technical outlook might be indicating a potential correction phase.

Some investors attribute Bitcoin’s weak performance to September historically being a low-yield month. Despite short-term pressures, there is speculation that the overall cycle may set the stage for a longer-term bull market after corrections. Expectations of interest rate cuts and strong inflows into spot bitcoin ETFs could support the price if demand remains steady.

Nonetheless, analysts warn about ongoing high volatility. Inflation data and global risk factors will influence market behaviors. The actions of long-term investors appear stable. On-chain data indicates that investors with strong conviction continue accumulating during downturns, and should speculative capital return, a recovery is highly probable.

Are Technical Data Weakening?

Recent inflows of hundreds of millions of dollars into Bitcoin spot ETFs point to institutional investors maintaining a bullish outlook. However, the weakening technical data suggests that this interest may not have an immediate positive effect on prices. Thus, it’s crucial for investors to develop strategies considering both ETF inflows and on-chain metrics along with macroeconomic data.