Bitcoin registered a 1.55% gain on Thursday, August 27, climbing from $79,023 to $80,249. The move triggered $68.95 million in short liquidations against $32.65 million in long liquidations.
August proved remarkably bullish for cryptocurrency markets overall. Bitcoin Spot ETFs saw net inflows every trading day since August 17, though this streak ended on August 27 with reported outflows of $35.3 million.
On-Chain Metrics Signal Potential Trend Shift
Several on-chain indicators suggest Bitcoin may be entering a bull market phase. The ratio of Bitcoin supply in profit versus supply at a loss has shifted dramatically over the past ten days, with the metrics crisscrossing in recent weeks—a pattern historically associated with the end of bear markets and the start of bull markets.
The 90-day moving average of Bitcoin's realized profit and loss metric reached 1.003, above the 1.0 threshold that indicates profit realization is dominant. This metric had remained below 1 for most of August before the recent rally reversed the trend.
The net unrealized loss metric, which measures unrealized losses as a share of market capitalization, fell to 7.35% at the time of reporting. This represents a significant decline from 25.2% in late June and 18.57% on August 16, indicating reduced financial stress among Bitcoin holders.
Sustainability Remains Key
Analysts emphasize that recent gains must be maintained without major sell-offs to confirm a sustained shift into a bullish regime. Profit-taking sell pressure has been tapering off, and sentiment remains positive. However, September is traditionally the most bearish month for Bitcoin, presenting a potential test of the recovery's durability.
