PANews reported on August 8th that, according to The Block, a report shared Thursday by on-chain analytics firm CryptoQuant indicated that Bitcoin, after reaching an all-time high of over $123,000 last month, is currently showing signs of short-term consolidation or mild downside risk. Bitcoin has entered a bull market cooling period, with the Bull Market Index falling from 80 to 60. While market conditions remain positive, upward momentum has weakened. The decline in the index reflects both profit-taking following Bitcoin's recent all-time high and the seasonal slowdown in summer trading activity. If Bitcoin prices weaken further, the indicator could fall into negative territory, pushing the Bull Market Index below 40—the first official bearish signal for the market since April 2023.

Multiple on-chain indicators confirm a decline in upward momentum, with stablecoin liquidity stagnating and turning positive, and new capital inflows drying up. Meanwhile, on-chain profit margin signals have turned positive, prompting traders to take profits. CryptoQuant suggests that Bitcoin may need a new bullish catalyst for continued upward movement. Its head of research believes a rate cut at the Federal Reserve's September meeting could be a key factor, as the market has long anticipated this.