Bitcoin Rallies as Bull Market Signals Emerge

CryptoQuant says Bitcoin has entered an early phase of a new bull market after a 24% rally pushed key onchain and demand indicators into bullish territory. The firm's Bull Score Index jumped to 80 from 30 over the past week, its highest level since October 2025, with eight of its ten underlying indicators now flashing bullish.

The move has been supported by accelerating spot demand, with spot and futures demand growing together for the first time since early October 2025. However, a weekly close above $83,000 is needed to confirm the shift to a sustained bull market, according to CryptoQuant.

LMAX Group market strategist Joel Kruger pointed to the May 2026 high of $82,820 as the next critical level: 'A clear break above that level would reinforce the view that a meaningful cycle low is now in place and shift attention towards the next major move through $100,000 and, ultimately, the 2025 record high.'

Despite bullish signals, CryptoQuant warned that the rally may be overheated in the short term. Traders' unrealized profit margins have climbed to 20.5%, their highest since June 2025, with a similar metric reaching 19% in early May leading to a 30% price drop.

Short-term holder whales realized roughly $1.2 billion in profits between Aug. 20 and Aug. 22, including a record $614 million on Aug. 20 alone. Bitcoin exchange inflows surged to approximately 53,000 BTC, their highest since June, signaling that more coins are moving onto trading platforms where they could be sold.