Bitcoin enters ‘initial phase’ of new bull market, but $83K remains key: CryptoQuant
Bitcoin has entered the early stages of a new bull market after a 24% rally pushed key onchain and demand indicators into bullish territory, according to CryptoQuant. The analytics firm's Bull Score jumped to 80 from 30 over the past week, hitting its highest level since …
Intelligence analysis by Llama
Bitcoin's 24% rally has flipped key market indicators bullish, though rising profit-taking could bring near-term turbulence. A weekly close above $83,000 is needed to confirm the shift to a new bull market.
Imagine you're at a big party, and everyone is having a great time. That's kind of like what's happening with Bitcoin right now. More and more people are buying it, and that's making the price go up. But, just like at a party, people might start to get tired and leave, which could make the price go down. That's what's happening with Bitcoin right now - people are buying it, but they might start to sell it soon, which could make the price go down.
Analysis
Bullish Indicators Flip to Bullish Territory
Bitcoin's 24% rally has pushed key onchain and demand indicators into bullish territory, according to CryptoQuant. The analytics firm's Bull Score jumped to 80 from 30 over the past week, hitting its highest level since October 2025. Eight of the index's 10 underlying indicators are now flashing bullish, supporting the view that Bitcoin has entered the early stages of a new bull market.
Accelerating Spot Demand and Growing Futures Demand
Accelerating spot demand and growing futures demand are supporting the bullish view. Spot and futures demand are growing together for the first time since early October 2025, according to CryptoQuant. This indicates that investors are becoming more confident in the market, which is a positive sign for the future.
Profit-Taking and Exchange Inflows
Despite the bullish signals, CryptoQuant warned that the rally may be overheated in the short term. Rising trader profits, heavy profit-taking by whales, and a spike in Bitcoin deposits to exchanges are all potential risks to the market. Traders' unrealized profit margins have climbed to 20.5%, their highest since June 2025. This could lead to a correction in the market, at least in the short term.
Key points
- Bitcoin has entered the early stages of a new bull market after a 24% rally.
- Key onchain and demand indicators are now flashing bullish.
- Accelerating spot demand and growing futures demand are supporting the bullish view.
- Rising trader profits, heavy profit-taking by whales, and a spike in Bitcoin deposits to exchanges are potential risks to the market.
If the rally continues, Bitcoin could reach new highs and potentially even break through the $100,000 level. This would be a significant milestone for the market and could lead to further growth and adoption.
However, the rally may be overheated in the short term, and a correction could be on the horizon. Rising profit-taking, heavy profit-taking by whales, and a spike in Bitcoin deposits to exchanges are all potential risks to the market.
