Bitcoin's Bullish Technical Outlook Driven by Emerging Demand

Bitcoin's long-term technical outlook has turned bullish again, according to James E. Thorne, Chief Market Strategist at Wellington-Altus. He notes that Bitcoin retreated to its rising 200-week moving average during the correction after its 2025 peak but managed to hold above this level, indicating a strong uptrend. The analyst points out that following the low seen in June, the 30-week and 40-week exponential moving averages shifted from a downward to an upward trend.

The fact that Bitcoin has risen above these averages again suggests that the medium-term outlook has shifted from bearish to bullish. Thorne also emphasizes that weekly momentum indicators support this price movement, with no negative divergence having formed. He attributes this shift in technical analysis to developments in GENIUS regulations and tokenization, which are integrating Bitcoin into the financial system's infrastructure.

The analyst believes that these changes could create a different and more structural demand for Bitcoin than in previous market cycles. Thorne refers to this period as a potential 'supercycle', highlighting the increasing prevalence of regulated stablecoins, tokenized US Treasury bonds, and on-chain consensus systems. He also points out that historically, stock markets enter their strongest performance periods during the four-year US presidential cycle.

Thorne notes that macroeconomic conditions have begun to shift in favor of Bitcoin. While there are signs of improvement in productivity, wages, and employment in the manufacturing sector, inflationary pressure has eased despite supply shocks from tariffs and rising oil prices. The analyst suggests that markets have already begun pricing in the aftermath of the Fed's tightening of monetary policy.