Bitcoin On-Chain Data Suggests Shift from Bear to Bull Cycle

A recent shift in Bitcoin's on-chain data has led analyst Crypto Dan to believe that the cryptocurrency may be transitioning out of its bear market and into a bullish cycle.

Crypto Dan pointed to two key indicators: the number of Bitcoin Unspent Transaction Outputs (UTXOs) sitting below their holders' purchase price, which has dropped sharply, and the fact that this drop is similar in scale to past cycles where bear markets ended and bull markets began.

The analyst noted that while recent macro events, including a Fed rate hike and the failure of the CLARITY Act in the Senate, may have caused short-term volatility, they did not appear to have undone the shift already underway.

Other on-chain indicators, such as Bitcoin's holding above $71,300 - a cost basis that only counts units actively moving through the market - and its rejection at $79,800, also suggest that the bear market may be coming to an end.