Bitcoin News Today: Bitcoin's Bull Score Slides to Neutral—Is a Correction Lurking in the Shadows?

Bitcoin’s recent price movements and key technical indicators suggest a shift in market dynamics, with the Bull Score Index signaling fading bullish momentum and increased uncertainty in the short term. The price is currently testing the $112,000 support level after retreating from its all-time high of nearly $123,217. This level is seen as a critical threshold for bulls, as a breakdown could open the path toward deeper support levels, including the 200-day SMA at approximately $100,597. The broader trend remains constructive over the long term, but short-term volatility and weakening momentum indicators highlight a more balanced market between buyers and sellers.

The CryptoQuant Bull Score Index, which tracks overall market strength using a combination of trading flows, investor behavior, and derivatives data, has shifted from a “Bullish Cooldown” phase to a “Neutral” phase. The index value dropped from 70 to 50, indicating a significant weakening in bullish momentum. CryptoQuant’s head of research, Julio Moreno, emphasized that this shift reflects a market in balance rather than a clear bullish signal. He noted that any further deterioration in the index could increase the likelihood of deeper corrections, particularly if price action fails to defend the $112K–$115K support zone.

The weakening of bullish indicators is compounded by recent on-chain and exchange data. On August 25, the Binance vs. Other Exchanges BTC Volume Delta turned positive, signaling increased spot buying activity on the world’s largest exchange. However, analysts caution that this may not be a reliable bullish sign. Historical patterns suggest that when Binance users increase spot buying, Bitcoin’s price often declines. This dynamic highlights the strategic advantage that institutional investors hold in managing liquidity and influencing market sentiment, often at the expense of retail traders.

Bitcoin is currently trading around $112,837, having slipped below the 50-day SMA and now testing the 100-day SMA as a potential support level. Momentum indicators also show a weakening in bullish pressure, with recent price candles displaying lower highs and lower lows. This consolidation phase appears to have established a trading range between $111K and $116K. Analysts are closely monitoring the market for a decisive breakout, as holding above the 100-day SMA could support a potential rebound toward $118K and a retest of $123K.

Looking ahead, the coming days will be pivotal in determining Bitcoin’s short-term trajectory. The market is navigating a critical inflection point in its long-term uptrend, with macroeconomic factors such as interest rate policies and institutional activity playing a decisive role. If Bitcoin holds its key support levels and fundamentals remain strong, this neutral phase may simply represent a healthy pause before the next upward move. However, should weakness persist and the Bull Score Index continue to soften, the market may be signaling the start of a deeper consolidation phase.

Source: [1] Bitcoin Bull Score Index Signals Fading Momentum (https://www.mitrade.com/insights/news/live-news/article-3-1062729-20250823) [2] But Is The Market Setting A Trap? | Bitcoin Binance (https://cryptorank.io/news/feed/d1dfd-bitcoin-binance-bullish-market-trap) [3] Bitcoin Bull Score Index Signals Fading Momentum (https://www.newsbtc.com/bitcoin-news/bitcoin-bull-score-index-signals-fading-momentum-room-for-downside/)