Bitcoin Bear Market Declared Over by CryptoQuant Indicator

The bear market for Bitcoin appears to be over according to CryptoQuant's Bull/Bear Market Cycle Indicator, which has shown its first positive reading in nearly a year. The indicator, based on a composite of profitability metrics including MVRV ratio and SOPR, turned bullish at 0.042 on August 26.

This is the same signal that preceded the end of the previous bear market in early 2023 when Bitcoin price began to recover. However, concerns remain over the insufficient market liquidity to support a macro price trend change.