Crypto▼ Bearish
CryptoQuant's Momentum Gauge Turns Negative, Bull Score at Zero
CryptoQuant's risk oscillator also reverted to a prior turning-point level, while demand metrics hit 2026 lows. The firm warns of weak market structure.
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CryptoQuant's volatility-adjusted momentum indicator has crossed below zero, a threshold the on-chain analytics firm said historically marks a shift from tepid optimism to bearish territory. The finding came in a Quicktake report published August 17, which also flagged that the firm's risk oscillator had reverted to a level previously associated with major turning points.
The indicator measures price momentum relative to volatility, filtering out noise. When it sits above zero, the market has enough directional energy to sustain trends. When it drops below, whatever momentum existed has been consumed by volatility without producing meaningful gains, CryptoQuant said.
The risk oscillator adds a second layer. By reverting to a prior turning-point level, it suggests the market is at a structural inflection, where prices have historically either found a floor or broken down further. With momentum already negative, the odds tilt toward the latter, the firm said.