[Analysis] Bitcoin Bull Score Hits 90, but Fading Demand May Curb Further Gains

Forecast Trend Report by Period

Bitcoin’s bull-market indicator has climbed close to its highest level, but buying demand in both the spot and futures markets is weakening at the same time, suggesting the cryptocurrency’s short-term upside is losing momentum.

CoinDesk reported on September 30 that CryptoQuant’s Bull Score currently stands at 90 out of 100. The indicator assesses Bitcoin’s market phase by combining on-chain and market data.

CoinDesk said Bitcoin’s move above its 365-day moving average last week drove a sharp rise in the Bull Score. A break above the long-term moving average is one of the key signals used to confirm the start of a bull market.

Actual demand for Bitcoin, however, has been declining. According to CryptoQuant, spot demand for Bitcoin fell by about 170,000 tokens over the past 30 days. Apparent demand, which is calculated using new mining supply and changes in Bitcoin that has not moved for more than a year, also trended lower throughout September.