Bitcoin may be entering a new bull-market phase as several valuation, demand, and liquidity indicators turn higher, according to analytics firm CryptoQuant. In a research note published on August 25, the firm stated that the shift is underway, though Bitcoin still requires further confirmation.
The assessment follows a period of renewed price strength for the cryptocurrency. Bitcoin climbed approximately 24% from August 17 to reach $80,000, marking its highest level since mid-May.
Rally Gains Broader Support
The recent price movement coincided with plans by the US Treasury to raise long-term bond buybacks to at least $4 billion per operation starting September 9, as well as comments from President Donald Trump regarding potential federal Bitcoin purchases.
During this period, CryptoQuant's market indicators showed a sharp improvement. The firm’s Bull Score climbed from 30 to 80 within a week, representing its strongest reading since October 6, 2025, when Bitcoin traded near $124,000. Currently, eight of the ten underlying indicators are in bullish territory.
Demand conditions have also expanded, with apparent spot demand growing at its fastest monthly pace since late December. Spot and futures demand rose simultaneously for the first time since early October 2025, indicating wider market participation.
Technical Confirmation and Selling Pressure
CryptoQuant noted that a daily close above the 365-day moving average is needed to fully confirm the new bull cycle. That moving average is currently positioned near $83,000, keeping Bitcoin below this critical technical threshold despite its recent gains.
The report also highlighted potential short-term selling pressure. Trader unrealized profit margins reached 20.5%, the highest level since June 2025, while large holders realized a record $614 million in profits on August 20.
Additionally, exchange data showed increased deposits of Bitcoin, Ether, and XRP, which can indicate that some holders are preparing to sell. While these flows do not guarantee a decline, they suggest that profit-taking could intensify if prices encounter resistance at key levels.
