Bitcoin’s on-chain indicators are showing a major turnaround as the Bitcoin Bull Score Index, tracked by analytics firm CryptoQuant, has surged from 20 to 50 in just four days, signaling that the asset has shifted out of bearish territory and is now in a neutral phase.
The Bull Score Index combines several critical on-chain metrics, including the Market Value to Realized Cap (MVRV) ratio, which measures average investor profitability, and Stablecoin Liquidity, which reflects available capital stored in fiat-pegged tokens.
According to CryptoQuant head of research Julio Moreno, a reading above 60 suggests strong bullish conditions, while a value below 40 indicates bearish territory. With the index now at 50, Bitcoin has moved into neutral ground after weeks of downward pressure.
This recovery coincides with the Federal Open Market Committee (FOMC) beginning its two-day policy meeting, a development that has kept Bitcoin’s price relatively stable. At the time of writing, BTC trades at $115,700, up more than 2.5% in the past week.
Adding another layer of insight, analytics firm Santiment reported that social media sentiment has also turned highly optimistic. Their Positive/Negative Sentiment metric surged to 1.77, meaning there are 1.77 bullish posts for every bearish one about Bitcoin across major platforms. This marks the most optimistic retail sentiment in over 10 weeks.
However, analysts caution that extreme optimism from retail traders often leads to the opposite outcome. Santiment highlighted that historically, when retail becomes too bullish, markets tend to correct in the short term.
For now, the on-chain recovery in CryptoQuant’s Bull Score and the surge in retail sentiment suggest that Bitcoin has broken free from its bearish phase, but whether this momentum sustains beyond the FOMC meeting remains uncertain.
