BlockBeats News, August 8th, Blockchain data analysis company CryptoQuant pointed out that after Bitcoin hit a historical high of $123,000 last month, it is showing signs of short-term consolidation or mild downward risk.

The company stated in a report released on Thursday: "Bitcoin has entered a bull market cooldown period, with the bullishness index dropping from 80 to 60. Although the overall environment is still positive, the upward momentum is weakening. CryptoQuant's bullishness index evaluates the Bitcoin market strength through multiple on-chain indicators, with a value close to 100 indicating strong buying pressure and bullish sentiment, while close to zero indicates heavy selling pressure."

CryptoQuant's analysis stated that the current index value of 60 is still in the bullish range, but the momentum continues to wane. The index retreat reflects profit-taking after hitting a historical high and also includes a seasonal slowdown in summer trading activity. The report specifically warned: "If the price weakens further, this indicator may fall into negative territory, causing the bullishness index to drop below 40 for the first time since April 2023—this would officially confirm the market's transition to a bear market."

CryptoQuant's Head of Research, Julio Moreno, added: "The Fed's rate cut in September could become a new catalyst, in line with the market's widespread expectations."