Bitcoin Shows Signs of Reversal as Volumes and Holder Profitability Surge

CryptoQuant's Bitcoin Cycle Momentum indicator has turned positive after eight months in bearish territory, signaling a possible shift in the market cycle. This comes as Bitcoin short-term holders have maintained at least partial profitability for 30 consecutive days, their longest uninterrupted profit streak of 2026.

Crypto trading volumes reached multi-month highs on August 21, with spot markets hitting $75 billion and perpetual futures reaching $336 billion. Meanwhile, large buyers have been absorbing retail selling pressure, potentially paving the way for a bullish reversal.