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Bitcoin’s momentum has slowed down significantly after reaching a recent record high of $123,000 in July, according to the latest market analysis. Despite this strong price level, various key indicators suggest that the cryptocurrency is no longer experiencing rapid growth.
The Bull Score Index from CryptoQuant, which tracks overall market sentiment and optimism, has dropped drastically from 80 to just 60 after hitting its peak. This significant decline signals a transition into a bullish cooldown phase where trader enthusiasm remains, but momentum has clearly softened.
Experts suggest that this slowdown is in line with seasonal trends as summer months typically display lower trading volumes and reduced interest from traders. A recent report by CryptoQuant indicates that market participants are taking profits after the rally, which has weakened immediate buying pressure. The data further supports this claim through its analysis of stablecoin liquidity metrics.
The latter, which tracks fresh capital flowing into the crypto space, has come to a grinding halt and even shifted negative. This means that new investment funds are no longer entering the market at the same rate as before, contributing to the slowing momentum. Furthermore, it is noted that USDT liquidity increased by $9.6 billion over the past 60 days but growth rates have slowed and now fall below average levels.
An additional sign of the diminishing enthusiasm lies in the unrealized profit margin of traders, which has also decreased. Many investors have taken profits, resulting in a reduction of this measure and signaling reduced momentum. This metric currently stands at approximately 7.4%, well below its typical trend.
All these indicators collectively point towards potential short-term consolidation or even minor price corrections, rather than a reversal.
Source: cryptopotato.com
