Bitcoin Bull Market Score Index Rises to Neutral Level, But 2022 History Warns of False Signals

Gate News message, April 23 — CryptoQuant's Bitcoin Bull Market Score Index has rebounded to the neutral level of 50 for the first time since Bitcoin declined from its high of $126,000, signaling a potential shift from bear to neutral market conditions. The index, which synthesizes ten on-chain indicators, currently shows equal split between bullish and bearish signals. According to CryptoQuant research head Julio Moreno, this marks the first time the index has entered neutral territory during this bear market cycle.

However, history offers a cautionary note: in March 2022, the index also rose to 50, only to be followed by Bitcoin plummeting from approximately $48,000 to below $20,000. QCP Capital noted that derivatives market positioning remains skewed toward range-bound trading rather than sustained breakthroughs, with front-end volatility depressed and skew still favoring downside protection.