Bitcoin Momentum Cools After $123K Record, Pauses at $118K
Bitcoin traded around $118,000 in August after hitting an all-time high of $123,000 in July. Key on-chain and market indicators from CryptoQuant point to a cooling phase rather than a reversal. The Bull Score Index fell from 80 to 60, signaling reduced bullish momentum. Stablecoin liquidity growth slowed, with USDT inflows up $9.6 billion over 60 days but below average rates. Traders’ unrealized profit margins have declined to 7.4%, reflecting profit-taking. Valuation metrics place the market at a tipping point: the Bull-Bear Cycle Indicator hovers near neutral and could turn negative if prices slip further. Analysts expect short-term consolidation or mild corrections, with renewed buying interest needed to sustain an uptrend.
Neutral
The article highlights a slowdown in Bitcoin’s upward momentum, driven by lower Bull Score readings, slowed stablecoin inflows and declining unrealized profits. These signals point to a consolidation phase rather than an outright reversal. Historically, Bitcoin often undergoes summer cooldowns—seen in 2021 and 2023—where high levels are followed by sideways trading before the next major leg up. Short-term, traders may see tighter ranges and mild pullbacks as profit-taking persists. Long-term, the fundamental bullish trend remains intact, provided on-chain demand and macro factors stay supportive. Overall, the news suggests caution but not a full bearish shift, making the outlook neutral until fresh catalysts emerge.