The Shift in Bitcoin’s Market Cycle: Is the Bullish Phase Here?

In a noteworthy shift in the cryptocurrency landscape, analysts at CryptoQuant have announced that Bitcoin has transitioned into a bullish market regime. According to their analysis, all key metrics indicate the onset of a new bull market. However, for this trend to be “officially” confirmed, Bitcoin must surpass its 365-day moving average of $83,000.
“All metrics are pointing to the initial phase of a new bull market,” stated Julio Moreno, Head of Research at CryptoQuant. Yet he emphasized two critical conditions: crossing the aforementioned moving average is essential to confirm this bullish trajectory.

Potential Corrections Amid High Unrealized Profits

Despite this optimism, Moreno warned about possible corrections due to high levels of unrealized profits from recent rallies and potential selling pressures resulting from increased Bitcoin inflows to exchanges.
CryptoQuant CEO Ki Young Ju also weighed in on these developments. He declared that Bitcoin’s bearish cycle is over. Notably, an internal company indicator signaled the start of an early bull market phase as far back as January 2023.

Bitcoin’s Struggle Near $80,000

In their latest report, CryptoQuant analysts highlighted that while Bitcoin retested the $80,000 level recently, it failed to maintain this price point. The demand was partly supported by inflows into spot ETFs and reduced U.S. Treasury bond yields; however, profit-taking by current holders curbed further growth.
On-chain data reveals that nearly all major investor groups have returned to profitability:
– 21.1% for long-term holders
– 13.4% for short-term holders
– 13.9% for capital held between one day and one month
– 5.3% for the newest investors
This scenario indicates a healthier market status while simultaneously increasing potential profit realization opportunities.

The Road Ahead: Can New Demand Sustain?

According to CryptoQuant experts, if Bitcoin can break through $80,000 with ETF backing and spot demand support firmly behind it, it could pave the way towards $88,000-$90,000. However, losing traction around the $75,000-$76,000 range might weaken short-term holder profitability and hasten corrections.
The central question remains whether new demand can absorb sales from profitable holders or not—a critical factor in determining whether Bitcoin can sustain its brief touches on high price points like $80K.
Additionally noted by CryptoQuant was a significant surge in their Bull Score indicator from 30 to 80 within just one week—the fastest change recorded in a year—signifying entry into another bullish market cycle.
As we look forward into what promises yet another dynamic chapter in cryptocurrency evolution—driven largely by technological advancements alongside shifting economic landscapes—the completion of Bitcoin’s bearish cycle heralds exciting possibilities ahead.