On-Chain Data Reveals Less Optimistic Outlook
Julio Moreno, Head of Research at CryptoQuant, has analyzed on-chain data to assess Bitcoin’s current market sentiment.
Bitcoin Bull-Bear Market Cycle Indicator
This indicator tracks the distance between the P&L Index (a valuation indicator) and its 365-day moving average. When the indicator is above zero, it suggests a bull market; below zero, a bear market.
Recent Trend
The indicator has been declining since Bitcoin’s all-time high, indicating a cooling off in market sentiment.
Current Market Conditions
Moreno notes that Bitcoin is “the least bullish since September 2023,” when the asset was consolidating before a period of growth.
Implications
While the indicator’s decline may not be entirely negative, it remains to be seen whether it will cross into bearish territory.
Bitcoin Price
At the time of writing, Bitcoin is trading around $61,600, down over 5% in the past week.
