Bitcoin has hovered near a critical range over the past few days, with the asset yet to make a decisive move. The cryptocurrency has traded within a tight band between $69,000 and $70,000, remaining range-bound for several sessions.
However, the current market dynamic appears to be softening and may gradually tilt toward a bullish direction as several key indicators begin to flip with a clearer bias.
Bitcoin bears could be gradually fading
The Bitcoin Bull Score Index, a gauge used to assess the level of bullish or bearish sentiment in the market, rose to 30 over the past day.
This reading marks the highest level recorded since October 2025. Before this move, the index had remained significantly lower for an extended period. The recent shift suggests that bearish pressure in the market is beginning to ease after dominating trading activity for weeks.
Source: CryptoQuantAccording to analyst Julio Moreno, the recent shift developed gradually over the past few days and largely reflects improving capital inflows.
Moreno noted that the change mainly reflects a shift in sentiment, moving from “extremely bearish” positioning to simply “bearish.” However, he cautioned that the development does not yet confirm the start of a sustained rally.
Social sentiment also appears to be improving.
Recent findings indicate that Bitcoin has continued to gain traction following the mining of the 20 millionth token earlier this month. The milestone has renewed market attention and added to broader market discussions around Bitcoin’s [BTC] long-term scarcity.
Taken together, the current market phase appears to represent a relief period.
Financial market correlation points to volatility
Bitcoin could also see stronger price reactions due to its growing correlation with traditional financial markets, particularly the S&P 500.
One key indicator is the CBOE Volatility Index, commonly known as the VIX. The index measures expected volatility in the S&P 500 and often reflects whether investors are experiencing fear or optimism in equity markets.
Data from Alphractal showed that the VIX held a reading of roughly 30, indicating that markets are experiencing a moderately volatile phase.
Source: AlphractalHistorically, Bitcoin tends to react more aggressively than the S&P 500 during periods of market movement. When equities rally, Bitcoin often records stronger upside moves.
Conversely, downturns in traditional markets can also trigger sharper declines in the cryptocurrency market.
While the current volatility level does not necessarily indicate a bullish or bearish outcome, it suggests that Bitcoin could amplify whichever direction broader market sentiment ultimately takes.
Traders remain skewed toward accumulation
Examining how traders position their Bitcoin holdings remains one of the clearest ways to understand broader market sentiment.
Current spot market activity shows a noticeable reduction in selling pressure, which helps limit the amount of Bitcoin entering the circulating supply from exchanges.
Five days ago, the market recorded approximately $191 million in Bitcoin inflow through selling activity. Over the past three days, however, net inflows have reached $138 million, reflecting a reduction of about $53 million in selling pressure.
Source: CoinGlassAs of the latest data, net inflows stand at roughly $24.36 million, suggesting that more traders are now choosing to hold their assets rather than sell.
Over a broader timeframe, accumulation trends appear even clearer. Roughly $1.70 billion worth of Bitcoin has been acquired from centralized exchanges over the past 30 days. Developments such as these reinforce the relief outlook suggested by the Bull Score Index.
Final Summary
- Bitcoin traded between $69,000 and $70,000, remaining range-bound while the market waited for a decisive breakout.
- The Bull Score Index rose to 30, its highest level since October 2025, signaling easing bearish pressure.
Source: https://ambcrypto.com/mapping-bitcoins-path-out-of-bear-territory-as-3-key-bull-flags-begin-to-flip/
