Bitcoin on-chain metrics indicate possible market bottom as the Bull Score reaches zero.
What to Know:
- Main event involves zero Bull Score and whale distribution.
- Possible market bottom signals from on-chain metrics.
- Amidst institutional outflows, Bitcoin witnesses major market fear.
Bitcoin’s on-chain metrics, including CryptoQuant’s Bull Score hitting zero, suggest a potential market bottom amid heightened market fear, whale distribution, and institutional outflows in November.
This signals a possible price stabilization, drawing attention to key support levels as extreme fear historically precedes market bounce-backs.
Bitcoin’s Bull Score has reached zero as whale distribution increases and institutional outflows reach over $1.3 billion at the start of November.
This event suggests a potential market bottom while Bitcoin’s value dips below key moving averages, affecting investor sentiment.
Bitcoin’s Bull Score Plummets to Zero
Bitcoin’s Bull Score from CryptoQuant has fallen to zero, indicating severe market fear. Coinciding, major whales have started distributing over 5,760 BTC, suggesting adjusted market strategies amid uncertainty.Kim Jong-woo, CEO, CryptoQuant: “The firm’s Bull Score Index — a composite measure of market strength — has fallen to zero for the first time since June 2022, a signal last seen before the previous bear market.”Institutional investors have shown hesitance, marked by $1.3 billion outflows from Bitcoin spot ETFs. No significant new institutional entries have been recorded, emphasizing a market retraction phase.
Institutional Outflows and Liquidity Concerns Grow
Bitcoin’s market falls under high volatility as liquidity remains low, with exchange balances at a low not seen in five years. Investor caution is palpable, with the market awaiting stability signals. The drop in the Fear & Greed Index to extreme fear underlines this apprehension, impacting not just Bitcoin but also other cryptocurrencies like Ethereum, contributing to wider market pullbacks.Market Fear Mirrors June 2022 Bear Market
The last zero Bull Score occurred in June 2022, preceding a bear market. Historically, extreme fear has coincided with the formation of market bottoms, hinting at potential market recalibration. If Bitcoin sustains below $100K, analysts warn of possible 30% corrections. However, the resilience of long-term holders could buffer against drastic declines.| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
