"Bitcoin's 4-year cycle isn't dead"...Bullish signal in 8 months

▲ Bitcoin (BTC)

Bitcoin's (BTC) cycle momentum indicator has turned into a bullish zone for the first time in 8 months, signaling the potential end of the bear market.

According to U.Today on September 2 (local time), CryptoQuant's Bitcoin cycle momentum on-chain indicator entered the bullish zone for the first time in 8 months. This signal has historically appeared at the end of long-term downtrends. However, for a complete confirmation of a trend reversal, the indicator needs to maintain high levels for the next few weeks.

Bitcoin recently rebounded rapidly from $62,000 to $81,000, breaking out of a multi-month slump. During this process, a typical cycle shift also occurred, where large holders absorbed the volume sold by individual investors. In August, large wallets holding over 100 BTC increased their holdings by approximately 60,000 BTC, while investors holding less than 100 BTC sold approximately 47,000 BTC.

Instead of selling Bitcoin, large investors also expanded their use of it as collateral. The volume of Bitcoin-backed loans by large investors on related platforms increased by 18%. This indicates a move to maintain Bitcoin holdings while allocating some assets to other digital assets.

Funds flowing into the market have also increased. US spot Bitcoin ETFs recorded their strongest weekly inflows in the last 10 months. Over $470 million in USDC also flowed into major exchanges. CryptoQuant analyzed that actual fund inflows are complementing the on-chain cycle reversal signal.

However, a short-term breather may occur around the $78,000 mark. U.Today described this area as a neutral zone where the market evaluates the price at an appropriate level. Selling by individual investors looking to secure short-term profits after the initial rise is also pressing down on the upside. The key support level is presented as approximately $69,000, which is the average purchase price for short-term investors.

[Key Article Summary]

-CryptoQuant's Bitcoin cycle momentum indicator entered the bullish zone for the first time in 8 months, signaling the potential end of the bear market.

-In August, large wallets purchased approximately 60,000 BTC, while small investors sold approximately 47,000 BTC, showing a clear shift in volume.

-US spot Bitcoin ETFs recorded their strongest weekly inflows in 10 months, and the key support level is presented as approximately $69,000.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*