Bitcoin Nears End of Bearish Phase as Spot Demand Turns Positive
CryptoQuant's on-chain metrics indicate that Bitcoin may be nearing the end of its bearish phase. Historically, when spot demand turns positive after a prolonged period, it has led to a median gain of 18.1% over the next 60 days, with an 87% win rate when valuations are depressed.
The 30-day visible spot demand indicator has recovered from -206,000 BTC on July 23 to approximately -5,000 BTC currently, close to turning positive for the first time since February 26. Analysts believe that this could be a strong indicator of subsequent growth.
However, Bitfinex Alpha analysts caution that the third factor necessary for a full recovery, capital flow from traditional markets into cryptocurrencies, is still missing. They suggest that if funds invested in stocks, tech, and AI infrastructure start moving into digital assets, Bitcoin could return above $70,000 and enter a stronger upward trend.