CryptoQuant: Bitcoin transitions to bull market

Research platform CryptoQuant sees a shift in Bitcoin’s market regime. Nearly all indicators tracked by the platform point to the early stage of a new bull market. However, official confirmation is not yet there: for that, the Bitcoin price first needs to rise above the 365-day average of $83.000. At the moment, Bitcoin is at $79.200, a small increase of 0.1% over the past 24 hours.

Bitcoin is available at OKX and Bybit.

In short:

• CryptoQuant reports that the market regime for Bitcoin has shifted to a bull market
• Official confirmation will only follow once the price closes above the 365-day average of $83.000
• A price correction remains possible due to high unrealised profits and increasing pressure on exchanges

Almost all signals are green

CryptoQuant analyst José Maria Moreno shares an overview of the so-called Bull Score Signals for Bitcoin. The chart shows that virtually all ten tracked indicators are currently giving a bullish signal, including the MVRV Z-score, the CryptoQuant Bull-Bear Cycle Indicator, stablecoin liquidity and Bitcoin Demand Growth.

That is striking, because earlier this year several of these indicators were still in the red. Earlier analyses already pointed to a strong recovery in Bitcoin demand and substantial profits among large holders, which is now also reflected in CryptoQuant’s broader on-chain data.

Correction remains possible despite positive picture

Moreno warns that the positive picture does not mean a price decline can be ruled out. The recent rally has led to high unrealised profits, which increases the likelihood that holders decide to sell. In addition, he notes an increase in the amount of Bitcoin being sent to exchanges, which typically points to additional selling pressure.

The $83.000 threshold is therefore a crucial level to watch. As long as the price does not sustainably close above it, CryptoQuant remains cautious. Arthur Hayes also earlier spoke about the start of a bull market, although he linked that to other factors such as liquidity from the US Department of the Treasury.

CryptoQuant’s full analysis can be read in their research report of 25 August. Whether the price will move toward that $83.000 in the short term or first pull back depends, according to Moreno, largely on how selling pressure develops in the coming days.