Bitcoin has entered the early stages of a new bull market cycle, according to analytics firm CryptoQuant, which cited a 24% price rally and a sharp rise in its Bull Score index.
The firm’s Bull Score—a composite measure of onchain and demand indicators—jumped to 80 from 30 over the past week, marking its highest level since October 2025. Eight of the index’s ten underlying components are now signaling bullish conditions, reflecting growing spot demand and the simultaneous rise in spot and futures demand for the first time since early October 2025.
A sustained break above Bitcoin’s 365-day moving average, currently around $83,000, is required to confirm the transition to a new bull market, CryptoQuant said. The cryptocurrency was trading near $79,000 at the time of reporting, according to CoinGecko data.
Market strategist Joel Kruger of LMAX Group highlighted the May 2026 high of $82,820 as a critical resistance level. A decisive move above that threshold would reinforce the view that a meaningful cycle low has been established, potentially paving the way for a push toward $100,000 and beyond to the 2025 record high.
Despite the bullish signals, CryptoQuant warned of short-term overheating risks. Traders’ unrealized profit margins have climbed to 20.5%, the highest since June 2025, a level previously associated with subsequent 30% declines when Bitcoin was near $82,000.
Short-term holder whales realized approximately $1.2 billion in profits between August 20 and 22, including a single-day record of $614 million on August 20, as Bitcoin traded in the $78,000 to $79,000 range. Exchange inflows also rose to roughly 53,000 BTC, the highest since June, indicating increased coin movements to trading platforms where they could be sold.
