Bitcoin Cycle Momentum Indicator Signals End to Bear Market

Bitcoin's traditional four-year cycles have been called into question by some skeptics who claimed that the influx of institutional money had rendered them obsolete. However, the Bitcoin Cycle Momentum indicator from CryptoQuant has entered positive bullish territory for the first time in eight months, suggesting a reversal in the bear market.

This signal has historically marked the end of prolonged downturns and confirmed that crypto market cycles still work like clockwork. The recent surge in price from $62,000 to $81,000 pulled the market out of a months-long slumber and triggered a wave of activity.

According to data for August, large wallets holding at least 100 BTC added around 60,000 BTC to their holdings while small investors sold a combined total of around 47,000 BTC. This indicates that coins are flowing en masse from panicking retail investors to long-term holders.

The current recovery is following the classic cycle-transition scenario where large investors are aggressively buying the bottom instead of selling their Bitcoin. They have even begun using it as collateral for loans to ride out the downturn.