CryptoQuant said the Bitcoin Cycle Momentum indicator returned to positive territory after eight months of bearish action, which may indicate that the downtrend is nearing its end and a potential market reversal is forming. The analytics firm said the indicator must continue rising and reach the 20–30 level in the coming weeks to confirm the signal, while cautioning that the current market structure remains mixed.

Short-term holders realize significant profits

Analyst Darkfost drew attention to the behavior of short-term Bitcoin holders, or STHs. According to his data, the group realized average profits of as much as 15% in August.

That exceeded the roughly 11% average profit recorded among short-term holders during the all-time-high period, Darkfost said. The last time their profitability reached a similarly high level was in October 2025, according to the analyst.

Darkfost said such profit levels create additional selling pressure. If demand absorbs that pressure and Bitcoin holds at current price levels, short-term holders may gradually reduce profit-taking and hold Bitcoin for longer in anticipation of further gains, he said.

Apparent Bitcoin demand turns negative

In a separate post dated Sept. 2, 2026, Darkfost said the apparent demand metric had moved back into negative territory, indicating a noticeable contraction in Bitcoin demand over the preceding few days.

The market is therefore facing continued selling pressure from short-term holders as demand weakens, according to the analyst. Darkfost said Bitcoin could begin another leg down unless demand rebounds in the near term.

Source: Incrypted