Bitcoin Market Cycle Shifts as Whales Absorb Retail Selling Pressure
CryptoQuant's Cycle Momentum indicator has turned positive after eight months in bearish territory, signaling a possible shift in the market cycle for Bitcoin.
The indicator compares CryptoQuant's PnL Index with its 365-day moving average and currently sits around 0.4, according to analyst Gaah, who said the signal points to a high probability of Bitcoin breaking its downtrend.
In August, wallets holding more than 100 BTC accumulated approximately 60,000 BTC, while smaller holders reduced their balances by about 33,000 BTC and addresses with less than 1 BTC sold close to 14,000 BTC.
The divergence suggests that larger investors were willing to accumulate as other market participants took profits during the rally. Bitcoin broke through the $62,000, $65,000 range on August 19, after spending much of the month trading near those levels.