Bitcoin recently broke out of a six-week trading range between $62,000 and $67,000, surging to $79,400 amid strong spot demand. CryptoQuant CEO Joo Ki-young stated on August 21 that such rallies during bear markets often mark a market bottom. While data increasingly supports this perspective, analysts note that full confirmation of a cycle bottom remains premature.
The recent price movement was accompanied by improved spot and perpetual futures demand across major exchanges. U.S. spot Bitcoin ETFs recorded net inflows totaling approximately $1.92 billion over five trading days, indicating meaningful institutional demand that helped reduce concerns over leveraged positions.
On-chain data highlights key recoveries in market cost bases. The short-term holder acquisition cost stood near $68,500 as of August 19, while the True Market Mean level was recorded at approximately $75,800. Bitcoin has since recovered above both thresholds, which analysts view as a sign of renewed confidence and a strengthening market structure.
Despite the positive indicators, caution remains warranted. The breakout above $67,000 triggered a $3 billion short squeeze that significantly amplified the upward price move. Analysts note that a similar rally occurred earlier in the year when prices moved from $60,000 to $82,000 before proving to be a temporary rebound.
Moving forward, CryptoQuant analysts indicate that Bitcoin must hold support between $75,000 and $76,000. A confirmed break above $80,000 and the clearing of the $82,000 to $83,000 resistance zone will serve as the next major tests for a lasting trend reversal.
