Bitcoin Enters New Bull Phase as Technical Indicators Flip Bullish, but $83K Remains Critical
Bitcoin's 24% rally has pushed major onchain indicators into bullish territory, with CryptoQuant's Bull Score reaching its highest level since October 2025. However, rising profit-taking and whale distribution could bring near-term volatility as the asset targets key resistance levels.
Bitcoin Enters Bull Market Phase as Technical Indicators Flip Bullish
Bitcoin has moved into the initial stage of a new bull market following a 24% surge that has pushed key technical and onchain metrics into bullish territory, according to CryptoQuant’s latest assessment. The analytics firm’s proprietary Bull Score indicator jumped sharply from 30 to 80 within a single week, marking its highest reading since October 2025. This significant shift reflects eight of the index’s ten underlying indicators now displaying bullish signals, suggesting broad-based strength across market dynamics.
Key Resistance Levels Define Path Forward
Bitcoin breached the $80,000 level during the rally but has since pulled back to around $79,000. CryptoQuant identified a weekly close above the 365-day moving average—presently positioned near $83,000—as the critical confirmation threshold for a sustained bull market transition. Market strategist Joel Kruger of LMAX Group highlighted the May 2026 peak of $82,820 as an important technical boundary to monitor. Breaking decisively above this level would confirm that a meaningful cycle floor has established, potentially paving the way toward $100,000 and ultimately the 2025 all-time high, Kruger told Cointelegraph.
The confluence of demand signals supports this bullish narrative. Spot demand has accelerated, while both spot and futures demand have grown simultaneously for the first time since early October 2025, according to CryptoQuant’s analysis.
Warning Signs: Profit-Taking and Distribution Signals Emerge
CryptoQuant issued a cautionary note alongside its bullish thesis, pointing to several metrics suggesting possible near-term volatility. Traders’ unrealized profits have climbed to 20.5%, their highest level since June 2025. History offers a cautionary lesson: in early May, when the same metric reached 19%, Bitcoin subsequently fell approximately 30%, trading near $82,000 at the time.
Whale activity reinforces concerns about distribution. Short-term holder whales booked approximately $1.2 billion in profits over August 20 through 22, with August 20 alone seeing a record $614 million in realized profits as Bitcoin traded between $78,000 and $79,000. Meanwhile, Bitcoin deposits to exchanges climbed to roughly 53,000 BTC, the highest volume since June, indicating heightened selling activity on major trading platforms.
A successful Bitcoin breakout could reignite momentum across the broader crypto market, including XRP and other digital assets that typically benefit from sustained Bitcoin strength.
Source: CryptoQuant, via Cointelegraph. Not financial advice.