Bitcoin has entered the early stages of a new bull market following a 24% rally that pushed key on-chain and demand indicators into bullish territory, according to analytics firm CryptoQuant.
Over the past week, CryptoQuant's Bull Score jumped from 30 to 80, reaching its highest level since October 2025. Eight of the index's ten underlying indicators are currently flashing bullish. The market shift has been supported by accelerating spot demand, with spot and futures demand growing together for the first time since early October 2025.
While Bitcoin climbed above $80,000 during the recent rally, CryptoQuant stated that a weekly close above its 365-day moving average—currently around $83,000—is necessary to fully confirm the shift to a new bull market. LMAX Group market strategist Joel Kruger also identified the May 2026 high of $82,820 as another important level, noting that a clear break above it would reinforce the view that a meaningful cycle low is established. At the time of writing, Bitcoin was trading near $79,000 according to CoinGecko data.
Despite the positive indicators, CryptoQuant warned that the rally may be overheated in the short term due to rising trader profits, heavy profit-taking by whales, and an increase in Bitcoin exchange deposits.
- Traders' unrealized profit margins climbed to 20.5%, the highest level since June 2025.
- Short-term holder whales realized approximately $1.2 billion in profits between August 20 and August 22.
- Bitcoin exchange inflows rose to roughly 53,000 BTC, the highest since June, indicating an increase in coins moving to trading platforms.
