Bitcoin Sees Early Signs of New Bull Cycle as Bull Score Soars

CryptoQuant analysts say Bitcoin is entering an early stage of a new bull cycle. Several valuation, demand, and liquidity indicators have turned higher, according to their research note from August 25. The firm's Bull Score has risen significantly, reaching its strongest reading since October 6, 2025.

The rally in Bitcoin also coincided with plans by the US Treasury to raise long-term bond buybacks to at least $4 billion per operation from September 9. Additionally, President Donald Trump mentioned possible federal Bitcoin purchases, which may have contributed to the price increase.

Despite this optimism, CryptoQuant notes that a daily close above BTC's 365-day moving average is still needed for confirmation. This threshold currently stands at approximately $83,000. The report also highlights factors that could create short-term pressure on Bitcoin's price, including high trader unrealized profit margins and record profits realized by large holders.

The firm observes higher exchange deposits of Bitcoin, Ether, and XRP, which can signal potential selling. However, this data does not guarantee a market decline but suggests profit-taking could become more significant if prices struggle above key resistance levels.