Bitcoin has shown renewed bullish momentum in recent sessions, pushing the price back towards the $97,000 level after weeks of persistent selling pressure. During much of the recent consolidation, the market struggled due to the distribution of short-term participants and cautious positioning by traders who remained uncertain about the broader trend.
That dynamic now appears to be changing. While price action alone does not confirm a complete trend reversal, the latest bounce suggests that downward pressure is easing and buyers are becoming more willing to absorb the available supply.
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This improvement in price behavior is supported by chain context rather than pure speculation. Quickly insight from analysts CryptoQuant highlights a rare development in market sentiment: The Bitcoin Bull Score Index has fallen to 20, a level that has historically only appeared a few times in the past few years. Such readings usually reflect deeply pessimistic conditions, when bullish signals across multiple indicators are rare.
Paradoxically, these environments often coincide with transitional phases rather than permanent decline. When bearishness becomes widespread and measurable optimism fades, markets become increasingly sensitive to even modest improvements in demand.
Bitcoin Bull Score Reaches Rare Historic Level
Over the past six years, the Bitcoin Bull Score Index has fallen to levels of 20 or lower only seven times. The market is now experiencing its seventh event, making the current environment among the rarest sentiment regimes in Bitcoin history.
This index brings together multiple chain and market indicators to assess whether conditions favor continued growth or reflect broad weakness. Readings near 20 show that very few bullish signals are active at the same time, highlighting a market dominated by caution rather than optimism.
Historically, such extremes have occurred during transitional phases. They often appear late in corrections, when selling pressure has set in heavily but confidence has not yet returned. This does not guarantee an instant turnaround. However, this suggests that downside momentum is becoming increasingly fragile, as most participants who wanted to reduce risk have already done so.
The timing of this signal is particularly relevant as Bitcoin approaches the critical psychological zone near $100,000. This level represents both major resistance to the round number and a key reference point for both short-term and long-term holders.
The coming weeks will be decisive. A sustained move towards and above $100K, accompanied by an improvement in the indicator width in the chain, would likely signal a move away from defensive positioning. Conversely, a failure at this level could intensify consolidation and prolong uncertainty.
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The weekly chart shows an attempted recovery below resistance
Bitcoin’s weekly chart shows the market trying to rally again after a prolonged corrective phase, with the price now hovering around the $96,000-$97,000 zone. This area is technically important as it aligns with the previous consolidation range that acted as support in mid-2025 and later turned into resistance after the November breakdown. The recent recovery suggests buyers are ready to defend more low prices, but confirmation remains incomplete.
From a trend perspective, Bitcoin is still trading below the descending 50-week moving average, which is currently limiting upside attempts. This level acted as dynamic resistance during previous bearish to neutral transitions. And that will be a critical area for a reversal to continue the trend.
Below the price, the 100-week moving average continues to trend higher and has provided structural support during recent pullbacks. Reinforcing the idea that the broader market structure remains intact despite short-term weaknesses.
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The volume behavior is also visible. The pullback towards $97,000 occurred without much expansion in volume, revealing that the move still lacks strong conviction. This supports the view that the current advance could be part of a recovery within a larger consolidation rather than the start of an impulse.
If Bitcoin manages to consolidate above $95,000 and eventually reclaim the 50-week moving average, a continuation towards the $105,000-$110,000 region is more likely. Failure to hold this zone would expose the market to further tests of the downside towards the mid-$80,000s. Keeping the broader consolidation unresolved.
Featured image from ChatGPT, chart from TradingView.com
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