$BTC $CRYPTO
#Bitcoin #CryptoQuant #BullMarket #BearMarket #MarketCycle #TrendReversal #Cryptocurrency #BTCUSD #Trading #Investing #Finance #Blockchain #TechnicalAnalysis
According to recent insights from a CryptoQuant Quicktake, Bitcoin (BTC) is showing early signs of a trend reversal, marking a potential shift in momentum after a period of decline. The analysis, conducted by contributor burakkemeci, highlights BTC’s significant bounce back, crossing the $100,000 mark for the first time since early February. This movement suggests Bitcoin might be on the cusp of breaking out from its recent bearish trend. Bitcoin’s trading activity, slightly above $100,000, places it near its all-time high (ATH) of $108,786 recorded in January. From its low of $74,508 in April, Bitcoin has rallied over 20%, indicating robust recovery momentum that could signal the start of a bullish phase. The CryptoQuant Bull-Bear Market Cycle indicator, referenced in the analysis, tracks long-term and short-term market sentiments by analyzing price momentum and investor behavior. Currently, it shows early bullish signals, highlighted by a turning point in the Bull-Bear 30-day moving average (MA) which, if it surpasses the 365-day MA, may historically precede a phase of exponential growth for Bitcoin.
Furthermore, recent macroeconomic trends could be reinforcing this bullish outlook for Bitcoin. Julien Bittel, Head of Macro Research at Global Macro Investor, shared insights on the correlation between the global M2 money supply and Bitcoin’s pricing trends. An overlay of Bitcoin’s price trajectory against the M2 money supply, adjusted with a 12-week lag, shows a significant rise in global liquidity since early 2025. This suggests a conducive environment for Bitcoin’s value to ascend in the forthcoming months, riding the wave of increased global liquidity. However, it’s critical to approach this bullish sentiment with caution. Despite the positive indicators, the market has witnessed aggressive profit-taking alongside the rally, hinting at the potential formation of a local top. Moreover, Bitcoin’s Demand Momentum remains in negative territory, a sign that often accompanies late-cycle distribution phases or extended periods of market consolidation.
Analysts also point to Bitcoin’s Stochastic Relative Strength Index (RSI), which has begun to show signs of bullish momentum, adding to the indicators suggesting an impending bullish trend reversal. At the moment, Bitcoin is trading at $103,444, up by 4% in the last 24 hours. This recent upswing, coupled with positive on-chain and macroeconomic indicators, suggests that Bitcoin could be gearing up for a significant bullish phase. Yet, the presence of conflicting signals warrants a cautious approach. Investors and traders are advised to keep an eye on both short-term market dynamics and long-term economic trends to navigate the volatile cryptocurrency market effectively.
In conclusion, while there are clear signals of a potential bullish breakout for Bitcoin, underscored by both on-chain indicators and macroeconomic factors, the path forward remains fraught with uncertainties. Aggressive profit-taking and the current negative Demand Momentum remind market participants of the need for vigilance. However, if Bitcoin’s price continues to follow the uptrend suggested by the Bull-Bear Market Cycle indicator and is buoyed by rising global liquidity, as indicated by the M2 money supply trends, we might indeed be at the dawn of a new bullish era for Bitcoin. Investors would do well to monitor these developments closely, as the cryptocurrency market’s inherent volatility demands a balanced blend of optimism and caution.
