Bitcoin's 22% Surge Sets Stage for Bull Market Hopes

Bitcoin's price surged by 22% in the past week, sparking hopes that this sharp reversal could be the starting gun for a bull market. According to moomoo's weekly data, prices rose from around $62,700 to $79,500 between August 17 and 23, with an increase of approximately 26.8% from low to high.

This rebound has drawn comparisons to past bear markets, where significant weekly reversals also occurred at the end of the previous two bear markets. In April 2019 and January 2023, prices rose by 26.02% and 21.93%, respectively, both of which were followed by medium- to long-term uptrends.

The current surge appears to have been driven by a short squeeze, but it's also seen significant inflows into spot Bitcoin ETFs, totaling approximately $1.918 billion over five trading days from August 17 to 21. This indicates that market support came not only from forced buying due to short squeezes but also from capital flowing in through ETFs.

On-chain metrics also show changes, with large holders accumulating approximately 43,000 BTC over the roughly 60 days leading up to August 19. The movements of both ETFs and large holders indicate that buying demand accumulated in the $60,000 range may have laid the foundation for this rebound.