Market Compass Falls to Defensive Zone as Macro Score Plummets

Glassnode's Market Compass overall score dropped to its lowest point in three months, entering the defensive zone at 23/100. The macro score plummeted by 8 points in a single week to 31, with the US Dollar Index returning to its 200-day moving average. This reversal effectively erased three weeks of macro recovery.

The on-chain fundamentals, however, rose to 52, the best reading of this cycle. Despite this, profit-taking during Bitcoin's rebound has been aggressive, with long-term and short-term holders roughly even, and losing flows shrinking to a small portion.

A broad-based asset rally at the end of August has faded, with almost all assets surging together but then selling off. The median seven-day return across all asset classes returned to nearly zero, and the index briefly crossed, then lost, the boundary for altcoin season.