Crypto
Market Compass Overall Score Drops to Defensive Zone Amid USD Strength
The Market Compass overall score from Glassnode dropped to 23/100, entering the defensive zone. The macro score fell by 8 points in a week to 31/100, with the US Dollar Index returning near the 200-day moving average and erasing three weeks of recovery.
On-chain fundamentals rose to 52, the best reading this cycle has seen so far, but profit-taking during Bitcoin's rebound was aggressive. Capital flows, cycle position, and investor behavior remained relatively unchanged.
The market's broad-based asset rally at the end of August has faded, with almost all assets surging together. This kind of simultaneous rally historically resembles a risk zone rather than the start of a sustainable uptrend.