Bitcoin Bull Cycle Signs Emerge as Demand and Liquidity Improve

The Bitcoin market may be entering the early stages of a new bull cycle, according to CryptoQuant. The firm's Bull Score has jumped from 30 to 80 in just one week, reaching its strongest reading since October 6, 2025. This improvement is attributed to stronger demand and improving liquidity, with eight out of ten underlying indicators now classified as bullish.

Recent flows from regulated investment products have also reinforced this trend. US spot Bitcoin ETFs attracted around $1.92 billion between August 17 and August 21, with all five sessions posting positive net flows. This influx of capital has contributed to a stronger market foundation, one that is no longer solely reliant on speculative futures activity.

However, CryptoQuant still sees an important technical test ahead. Bitcoin needs to close above its 365-day moving average near $83,000 before the new bull-cycle reading can be confirmed. This level serves as a key indicator of whether the recent advance will develop into a sustained trend or not.