Bitcoin is settling into a bullish cooldown phase after touching a record $123,000, according to a new analysis from Cryptoquant.
Bull Score Dip Marks Cooling Phase for Bitcoin
Bitcoin’s rapid climb has paused after hitting an all-time high of $123,000, entering what Cryptoquant’s Institutional Insights report calls a “bullish cooldown” phase. The firm’s Bull Score Index slid from 80 to 60, signaling waning momentum while still holding within bullish territory.
Researchers pointed to weakening onchain trends fueling this slowdown. Stablecoin liquidity growth – a key gauge of fresh capital – has cooled, turning red on Cryptoquant’s dashboard. Network activity has tapered off, and BTC inflows to top exchanges like Coinbase have eased, hinting at softer short-term demand from investors.
Heavy profit-taking is also playing a role. Cryptoquant’s traders’ onchain profit margin signal flipped red, showing many participants have already locked in significant gains and now hold fewer unrealized profits. Coupled with the market’s typical summer lull, these factors are shaping the current consolidation period.
Source: Cryptoquant’s Institutional Insights report
Valuation gauges are now hovering near a pivotal bull-bear tipping point. The Bull-Bear Cycle Market Indicator, P&L Index, and MVRV Z-score all sit close to levels where any further price dip could push them into bearish territory. Should that happen, Cryptoquant analysts say the Bull Score Index could drop below 40 for the first time since April 2023.
For now, the firm describes the outlook as cautiously neutral. The overarching market cycle still leans bullish, but with profit-taking, slowing liquidity expansion – notably tether (USDT) growth decelerating to $9.6 billion over 60 days – and softening momentum, prices could consolidate or pull back modestly.
Cryptoquant researchers note that this stage leaves the market exposed and in need of fresh bullish drivers to kick-start the next leg higher.
